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Has the Stability and Growth Pact Stabilised?<br>Evidence from a Panel of 12 European Countries and Some Implications for the Reform of the Pact

Marinheiro, Carlos Fonseca - CESifo - 2005

Ever since its inception EMU has been subject to controversy. The fiscal policy rules embedded in the Treaty on …

Persistent link: https://www.econbiz.de/10005406411

Euro Membership and Fiscal Reaction Functions

Weichenrieder, Alfons J. - 2013

The paper uses fiscal reaction functions for a panel of euro-area countries to investigate whether euro membership has reduced the responsiveness of countries to shocks in the level of inherited debt compared to the period prior to succession to the euro. While we find some evidence for such a...

Persistent link: https://www.econbiz.de/10013080736

Fiscal Divergence and Current Account Imbalances in Europe

Schnabl, Gunther; Wollmershäuser, Timo - CESifo - 2013

Since the breakdown of the Bretton Woods System diverging current account positions in Europe have prevailed. While the Southern and Western European countries have tended to run current account deficits, the current accounts of the Central and Northern European countries, in particular Germany,...

Persistent link: https://www.econbiz.de/10010877801

Hypnosis Before Wake-up Call?! The Revival of Sovereign Credit Risk Perception in the EMU-Crisis

Bordon, Ingo G.; Schmid, Kai D.; Schmidt, Michael - CESifo - 2014

the Maastricht treaty, the EMU convergence era, and the financial crisis. In detail, we find: (i) Since the 1980s the role … treaty, and again with the wake-up call due to the onset of the financial crisis. (ii) Before the financial crisis EMU member …

Persistent link: https://www.econbiz.de/10010888450

The Bail-Out! Positive Political Economics of Greek-type Crises in the EMU

Fahrholz, Christian; Wójcik, Cezary - CESifo - 2010

analysis suggests that, given EMU’s present political-economic set-up, i) the bail-out was unavoidable, ii) the lengthy process … with a future moral hazard problem. Based on our analysis, we suggest that the EMU’s institutional design could be improved … processes as well as the conditions and parameters on which the scope and limits of fiscal redistribution in EMU depends. In …

Persistent link: https://www.econbiz.de/10008671732

Fiscal Rules, Financial Stability and Optimal Currency Areas

De Grauwe, Paul - 2015

In this paper we suggest that Eurozone countries face a policy trade-off among: 1) a common rule imposing co-movements in fiscal policy; 2) financial stability; and 3) financial integration. We provide empirical evidence documenting the existence of such a trade-off in the period characterized...

Persistent link: https://www.econbiz.de/10013020581

Fiscal Federlism in a Monetary Union : The Cooperation Pitfall

Kempf, Hubert - 2018

Fiscal federalism may not be a panacea in a monetary union if it does not address the non-cooperative behaviour between fiscal policymakers. To prove this, we assess the relative merits of a fiscal federalism scheme in a monetary union and intergovernmental fiscal cooperation without such a...

Persistent link: https://www.econbiz.de/10012930695

The Role of Fiscal Policy in a Monetary Union : Are National Automatic Stabilizers Effective?

Colciago, Andrea; Muscatelli, Anton; Ropele, Tiziano; … - 2021

We assess the role of national fiscal policies, as automatic stabilizers, within a monetary union. We use a two-country New Keynesian DGE model which incorporates non-Ricardian consumers (as in Gali et al. 2004) and a home bias in the composition of national consumption bundles. We find that...

Persistent link: https://www.econbiz.de/10013317638

Fiscal Delegation in a Monetary Union with Decentralized Public Spending

Basso, Henrique S. - 2016

In a monetary union, the interaction between several governments and a single central bank is plagued by several sources of deficit bias, including common pool problems. Each government has strong preferences over local spending and taxation but suffers only part of the costs of union-wide...

Persistent link: https://www.econbiz.de/10012996333

Labor Mobility and Fiscal Policy in a Currency Union

Baglioni, Angelo S. - 2015

Labor mobility is commonly taken as a property of an optimal currency area. But how does that property affect the outcome of fiscal policies? In our model, we show that perfect (costless) labour mobility is not necessarily welfare improving, since it prevents the national fiscal authorities from...

Persistent link: https://www.econbiz.de/10013029495