Mabbett, Deborah; Schelkle, Waltraud - European Institute, London School of Economics (LSE) - 2014
could worsen fiscal outturns. We argue, contrary to the ‘disciplinarian’ interpretation of the Stability and Growth Pact … discretion of national governments was seen as the key to macroeconomic stability. The financial crisis and its aftermath … challenge this paradigm. Private debt caused the crisis and monetary policy is so weak that pro-cyclical fiscal retrenchment …