A dynamic rule applied to the threshold imposed on the European budgetary deficits
AbstractUp until now, European fiscal discipline has been essentially assessed on the basis of the deficit rather than on the debt situations of EU countries. However, the sustainability of the public debt depends on the discrepancy between the interest rate and the growth rate of any given country. As these future economic variables are difficult to anticipate, however, the present paper proposes a more applicable rule for the deficits. Unlike what is stated in the Stability and Growth Pact, the budgetary deficits in the European Union may therefore be kept at higher levels as a country maintains a high inflation or real growth rate, and a low level of public indebtedness.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Journal of Policy Modeling.
Volume (Year): 30 (2008)
Issue (Month): 6 ()
Contact details of provider:
Web page: http://www.elsevier.com/locate/inca/505735
Budgetary deficit Public debt Growth rate European Union Stability and Growth Pact;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Bruck, Tilman & Zwiener, Rudolf, 2006.
"Fiscal policy rules for stabilisation and growth: A simulation analysis of deficit and expenditure targets in a monetary union,"
Journal of Policy Modeling,
Elsevier, vol. 28(4), pages 357-369, May.
- Tilman Brück & Rudolf Zwiener, 2004. "Fiscal Policy Rules for Stabilisation and Growth: A Simulation Analysis of Deficit and Expenditure Targets in a Monetary Union," Discussion Papers of DIW Berlin 427, DIW Berlin, German Institute for Economic Research.
- Buti, M. & Eijffinger, S.C.W. & Franco, D., 2003.
"Revisiting the stability and growth pact: Grand design or internal adjustment?,"
Open Access publications from Tilburg University
urn:nbn:nl:ui:12-152958, Tilburg University.
- Buti, Marco & Eijffinger, Sylvester C W & Franco, Daniele, 2003. "Revisiting the Stability and Growth Pact: Grand Design or Internal Adjustment?," CEPR Discussion Papers 3692, C.E.P.R. Discussion Papers.
- Buti, M. & Eijffinger, S.C.W. & Franco, D., 2003. "Revisiting the Stability and Growth Pact: Grand Design or Internal Adjustment?," Open Access publications from Tilburg University urn:nbn:nl:ui:12-176184, Tilburg University.
- Marco Buti & Sylvester Eijffinger & Daniele Franco, 2003. "Revisiting the Stability and Growth Pact: grand design or internal adjustment?," European Economy - Economic Papers 180, Directorate General Economic and Monetary Affairs (DG ECFIN), European Commission.
- Francesco Saraceno & Paola Monperrus-Veroni, 2004.
"A Simple Proposal for a 'Debt-Sensitive Stability Pact',"
- Francesco Saraceno & Paola Monperrus-Veroni, 2004. "A Simple Proposal for a "Debt-Sensitive Stability Pact"," Vierteljahrshefte zur Wirtschaftsforschung / Quarterly Journal of Economic Research, DIW Berlin, German Institute for Economic Research, vol. 73(3), pages 471-480.
- Eichengreen, Barry, 2005. "Europe, the euro and the ECB: Monetary success, fiscal failure," Journal of Policy Modeling, Elsevier, vol. 27(4), pages 427-439, June.
- Merih Uctum & Michael Wickens, 1996.
"Debt and deficit ceilings, and sustainability of fiscal policies: an intertemporal analysis,"
9615, Federal Reserve Bank of New York.
- Uctum, Merih & Wickens, Michael, 2000. " Debt and Deficit Ceilings, and Sustainability of Fiscal Policies: An Intertemporal Analysis," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 62(2), pages 197-222, May.
- Uctum, Merih & Wickens, Michael R, 1997. "Debt and Deficit Ceilings, and Sustainability of Fiscal Policies: An Intertemporal Analysis," CEPR Discussion Papers 1612, C.E.P.R. Discussion Papers.
- Gábor Orbán & György Szapáry, 2004.
"The Stability and Growth Pact from the Perspective of the New Member States,"
MNB Working Papers
2004/4, Magyar Nemzeti Bank (the central bank of Hungary).
- Orban, Gabor & Szapary, Gyorgy, 2004. "The Stability and Growth Pact from the perspective of the new member states," Journal of Policy Modeling, Elsevier, vol. 26(7), pages 839-864, October.
- Gábor Orbán & György Szapáry, 2004. "The Stability and Growth Pact from the Perspective Of the New Member States," William Davidson Institute Working Papers Series 2004-709, William Davidson Institute at the University of Michigan.
- Matthew B. Canzoneri & Robert E. Cumby & Behzad T. Diba, 2002. "Should the European Central Bank and the Federal Reserve be concerned about fiscal policy?," Proceedings, Federal Reserve Bank of Kansas City, pages 333-389.
- Pierre-Yves Hénin, 1997. "Soutenabilité des déficits et ajustements budgétaires," Revue économique, Presses de Sciences-Po, vol. 0(3), pages 371-395.
- Wyplosz, Charles, 2002. "Fiscal Policy: Institutions versus Rules," CEPR Discussion Papers 3238, C.E.P.R. Discussion Papers.
- Pierre-Yves Hénin, 1997. "Soutenabilité des déficits et ajustements budgétaires," Revue Économique, Programme National Persée, vol. 48(3), pages 371-395.
- Garcia, Carlos J. & Restrepo, Jorge E. & Tanner, Evan, 2011.
"Fiscal rules in a volatile world: A welfare-based approach,"
Journal of Policy Modeling,
Elsevier, vol. 33(4), pages 649-676, July.
- Jorge Restrepo & Carlos Garcia & Evan Tanner, 2011. "Fiscal Rules in a Volatile World: A Welfare-Based Approach," IMF Working Papers 11/56, International Monetary Fund.
- Schuknecht, Ludger & Hauptmeier, Sebastian & Sanchez Fuéntes, Jésus, 2011.
"Towards Expenditure Rules and Fiscal Sanity in the Euro Area,"
Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis
48693, Verein für Socialpolitik / German Economic Association.
- Hauptmeier, Sebastian & Sanchez-Fuentes, A. Jesus & Schuknecht, Ludger, 2011. "Towards expenditure rules and fiscal sanity in the euro area," Journal of Policy Modeling, Elsevier, vol. 33(4), pages 597-617, July.
- Sebastian Hauptmeier & Jesus Sanchez Fuentes & Ludger Schuknecht, 2010. "Towards expenditure rules and fiscal sanity in the euro area," Working Paper Series 1266, European Central Bank.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Wendy Shamier).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.