usually supported by strong economic growth. On the second extreme, we identify fiscally irresponsible central European … with the Stability and Growth Pact and later with recent reform efforts.Our key finding concerning the behaviour of the …

policy whereby NMS must comply with the Stability and Growth Pact (SGP) rules. Indeed, six out of the ten NMS have breached … efforts and responsible fiscal policy-making, supported usually by strong economic growth. In this context, room is given to …

the EU’s Stability and Growth Pact, suffer from the same endogeneity flaw. Consequently, we argue that a fiscal rule must …

include an additional dimension of public policy, namely education funding. Indeed, the productivity growth of future workers …

that growth can be enhanced by the introduction of pay-as-you-go pensions even if the growth rate of aggregate wages falls … redistributive. This means that if a flat benefit PAYG pension system is in place then the economy will achieve the highest growth …