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Finances publiques, sorties de crise…

Author

Listed:
  • 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…," Post-Print hal-03460493, HAL.
    • Handle: RePEc:hal:journl:hal-03460493
    DOI: 10.3917/reof.116.0017
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03460493
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    References listed on IDEAS

    as
    1. Catherine Mathieu & Henri Sterdyniak, 2009. "La globalisation financière en crise," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(3), pages 13-73.
    2. repec:spo:wpmain:info:hdl:2441/5l6uh8ogmqildh09h84aj549j is not listed on IDEAS
    3. 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.
    4. Jean Pisani-Ferry & André Sapir & Jürgen von Hagen & Anne Krueger, . "A European mechanism for sovereign debt crisis resolution- a proposal," Bruegel Blueprints, Bruegel, number 446.
    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. Catherine Mathieu & Henri Sterdyniak, 2006. "A European fiscal framework designed for stability or growth ?," Sciences Po Economics Publications (main) hal-03416080, HAL.
    7. Jacques Delpla & Jakob von Weizsäcker, 2010. "The Blue Bond Proposal," Bruegel Policy Brief 403, Bruegel.
    8. Olivier Blanchard & Giovanni Dell’Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
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    10. Carlo Cottarelli & José Vinãls, 2009. "A Strategy for Renormalizing Fiscal and Monetary Policies in Advanced Economies," IMF Staff Position Notes 2009/22, International Monetary Fund.
    11. Olivier Blanchard & Giovanni Dell'Ariccia & Paolo Mauro, 2010. "Rethinking Macroeconomic Policy," Journal of Money, Credit and Banking, Blackwell Publishing, vol. 42(s1), pages 199-215, September.
    12. 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.
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    Cited by:

    1. Catherine Mathieu & Henri Sterdyniak, 2013. "Do we need fiscal rules?," Revue de l'OFCE, Presses de Sciences-Po, vol. 0(1), pages 189-233.
    2. 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.

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