IDEAS home Printed from https://ideas.repec.org/a/pfq/journl/v59y2014i3p367-383.html
   My bibliography  Save this article

Alternatives to Renew Monetary Policy and the Stability and Growth Pact in the Euro Area

Author

Listed:
  • Kertész, Krisztián

Abstract

Due to radical fiscal adjustments and the overdue monetary easing, the lag of the European economy behind the Uni-ted States has grown by more than 7 per cent in the past five years, although the source of the crisis was not the EU but the US. The efficient method of crisis management would be if the ECB were also to announce a “quantitative easing” Securities Markets Programme and were to begin buying government bonds of peripheral countries where the unemployment rate is higher than natural. It would also be necessary for the ECB to not only apply inflation targeting, but – just like the FED – to take into consideration the unemployment rate as well when shaping its monetary policy. In addition, the criteria of the Stability and Growth Pact should also be changed: it would perhaps be better to define targets for the rate of net country debt and the balance of payments rather than creating rules for gross public debt rate and public finance deficit.

Suggested Citation

  • Kertész, Krisztián, 2014. "Alternatives to Renew Monetary Policy and the Stability and Growth Pact in the Euro Area," Public Finance Quarterly, Corvinus University of Budapest, vol. 59(3), pages 367-383.
    • Handle: RePEc:pfq:journl:v:59:y:2014:i:3:p:367-383
    as

    Download full text from publisher

    File URL: https://unipub.lib.uni-corvinus.hu/8881/
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    public debt; European Central Bank; Securities Markets Programme; Stability and Growth Pact;
    All these keywords.

    JEL classification:

    • E58 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Central Banks and Their Policies
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:pfq:journl:v:59:y:2014:i:3:p:367-383. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Adam Hoffmann (email available below). General contact details of provider: https://edirc.repec.org/data/bkeeehu.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.