The `Excessive Deficit Procedure' of the Maastricht Treaty on Economic and Monetary Union proposes two fiscal convergence conditions for entry and continued membership in the EMU: 1) a country's overall budget deficit for each fiscal year must be equal to or below 3% of GDP, and 2) a country's...

This book proposes new fiscal rules to address the debt crisis, including a balanced budget amendment and a deficit-debt brake. It estimates the impact of the proposed rules on the economy over the next two decades