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Finances publiques, sorties de crise…

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  • Catherine Mathieu

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

  • Henri Sterdyniak

    (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)

Abstract

The 2007-2009 financial crisis was caused by financial markets' greed and instability and led to a strong rise public debts and deficits in advanced economies. Financial markets and international institutions advocate a "fiscal exit strategy" through rapid cuts in public deficits and debts under large public spending cuts. However the state of public finances was generally satisfactory before the crisis; the rise in deficits was needed for macroeconomic stabilisation purposes. Exit strategies should maintain interest rates at low levels and government deficits as long as they are needed to support activity. Strengthening the SGP would be dangerous if it deprived EU Member States of policy tools that were helpful in the crisis. In the euro area public debts should be collectively guaranteed by the ECB and the Member States to avoid speculation. World economic stability is not threatened by public finance imbalances, but by growing financial speculation.

Suggested Citation

  • Catherine Mathieu & Henri Sterdyniak, 2011. "Finances publiques, sorties de crise…," SciencePo Working papers Main hal-03460493, HAL.
    • Handle: RePEc:hal:spmain:hal-03460493
    DOI: 10.3917/reof.116.0017
    Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-03460493
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    References listed on IDEAS

    as
    1. repec:hal:wpspec:info:hdl:2441/1783 is not listed on IDEAS
    2. Catherine Mathieu & Henri Sterdyniak, 2003. "Réformer le pacte de stabilité : l'état du débat," Revue de l'OFCE, Presses de Sciences-Po, vol. 84(1), pages 145-179.
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    4. Catherine Mathieu & Henri Sterdyniak, 2009. "La globalisation financière en crise," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 13-73.
    5. Mr. Carlo Cottarelli & José Vinãls, 2009. "A Strategy for Renormalizing Fiscal and Monetary Policies in Advanced Economies," IMF Staff Position Notes 2009/022, International Monetary Fund.
    6. Jérôme Creel & Bruno Ducoudré & Catherine Mathieu & Henri Sterdyniak, 2005. "Doit-on oublier la politique budgétaire ?. Une analyse critique de la nouvelle théorie anti-keynésienne des finances publiques," Revue de l'OFCE, Presses de Sciences-Po, vol. 92(1), pages 43-97.
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    8. Catherine Mathieu & Henri Sterdyniak, 2007. "Comment expliquer les disparités économiques dans l'UEM ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 315-352.
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    13. Catherine Mathieu & Henri Sterdyniak, 2006. "A European fiscal framework designed for stability or growth ?," Post-Print hal-03416080, HAL.
    14. Servaas Deroose & Sven Langedijk & Werner Roeger, 2004. "Reviewing adjustment dynamics in EMU: from overheating to overcooling," European Economy - Economic Papers 2008 - 2015 198, Directorate General Economic and Financial Affairs (DG ECFIN), European Commission.
    15. Jürgen von Hagen & Jean Pisani-Ferry & André Sapir & Francois Gianviti & Anne O. Krueger, . "A European mechanism for sovereign debt crisis resolution- a proposal," Blueprints, Bruegel, number 446, December.
    16. Jakob von Weizsäcker & Jacques Delpla, 2010. "The Blue Bond Proposal," Policy Briefs 403, Bruegel.
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    Cited by:

    1. Catherine Mathieu & Henri Sterdyniak, 2013. "Can the new French economic policy be successful?," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 10(2), pages 175-192.
    2. repec:hal:spmain:info:hdl:2441/dambferfb7dfprc9lip1oi0sn is not listed on IDEAS
    3. repec:hal:spmain:info:hdl:2441/eu4vqp9ompqllr09j0h168m2j is not listed on IDEAS
    4. repec:hal:spmain:info:hdl:2441/5gatfudi8d950o29nati6iv55f is not listed on IDEAS
    5. Catherine Mathieu & Henri Sterdyniak, 2013. "Do we need fiscal rules?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 189-233.

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