Sigl-Glöckner, Philippa; Krahé, Max; Kern, Florian; … - 2022
There is consensus that the Stability and Growth Pact (SGP) needs to evolve. In this paper, we put forward reform ideas … sharpen the distinction between fiscal and monetary policy, as monetary policy has no direct influence on the primary balance …'s understanding of monetary policy transmission mechanisms, mechanically limiting sovereign credit at an arbitrary debt-to-GDP ratio …