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Investment and the golden rule in the European Union

Marinescu, Ada Cristina - In: Financial studies 22 (2018) 1, pp. 53-63

We will study in this paper the relation between public investment, public debt and fiscal rules in the European Union countries. The strict fiscal rules imposed by EU have negatively affected the investments. The decline in public investment in European Union is related to the fiscal rules...

Persistent link: https://www.econbiz.de/10011964940

The stability pack and inefficiencies in fiscal policy making in EMU

Alho, Kari E. O. - 2000

The aim of the paper is to analyse the Stability and Growth Pact of EMU in a two-country model of monetary union with …

Persistent link: https://www.econbiz.de/10010199298

The golden rule of public investment : a necessary and sufficient reform of the EU fiscal framework?

Truger, Achim - 2016

proposes the introduction of the traditional public finance golden rule into the EU/Eurozone fiscal framework (Stability and … (SWP) und Fiskalpakt(FP) der EU/Eurozone. Eine solche Regel würde die öffentlichen (Netto-)Investitionen in geeigneter … Finanzpolitik insgesamt größere Spielräume einräumen und die öffentlichen Investitionen als besonders wachstumsrelevante öffentliche …

Persistent link: https://www.econbiz.de/10011477456

Growth vs. discipline : Italy's fiscal dilemmas in a stock-flow consistent model

Zezza, Francesco; Zezza, Gennaro - 2025

This paper investigates the implications of the European Union's revised fiscal governance framework for Italy, a country facing the dual challenge of high public debt and persistent economic stagnation. Using a Stock-Flow Consistent (SFC) macroeconometric model of the Italian economy (MITA), we...

Persistent link: https://www.econbiz.de/10015403351

Does the Stability and Growth Pact Induce a Bias in the EC's Fiscal Forecasts

Gilbert, Niels D. - 2014

Enforcement of European fiscal rules, to a large extent, hinges on the fiscal forecasts prepared by the European Commission (EC). The reliability of these forecasts has received little attention in the literature, despite the fact that i) the forecasts have potentially far-reaching consequences...

Persistent link: https://www.econbiz.de/10013040182

Potential output and fiscal rules in a monetary union under asymmetric information

Marattin, Luigi; Meraglia, Simone - 2015

We analyze fiscal rules within a Monetary Union in the presence of (i) asymmetric information about member states' potential output and, therefore, output gap and (ii) bail-out among member states. In our framework, bail-out lowers the scope for signalling (discrimination) by member states...

Persistent link: https://www.econbiz.de/10011714310

Potential output and fiscal rules in a monetary union under asymmetric information - 2nd ed

Marattin, Luigi; Meraglia, Simone - 2016 - 2nd edition

We analyze fiscal rules within a Monetary Union in the presence of (i) asymmetric information on member states' potential output and (ii) bail-out among member states. The first-best deficit is contingent on the cycle, that is, on member states' output gap. In the presence of asymmetric...

Persistent link: https://www.econbiz.de/10011705510

Bunching at 3 Percent : The Maastricht Fiscal Criterion and Government Deficits

Caselli, Francesca - 2018

This paper estimates the effects of the Maastricht treaty's fiscal criterion on EU countries' general government deficits. We combine treatment effects methods with bunching estimation, and find that the 3 percent deficit rule acts as a 'magnet', increasing the number of observations around the...

Persistent link: https://www.econbiz.de/10012912484

Credibility and bias : the case for implementing both a debt anchor and a balanced budget rule

Castro-Valderrama, Marcela de; Moreno-Arias, Nicolás; … - 2023

Should a government have more than one fiscal rule constraining fiscal aggregates? If so, why? In this paper, we present a dynamic general equilibrium model of a small open economy featuring an incumbent government to assess how and why implementing a budget balance rule and a debt anchor rule...

Persistent link: https://www.econbiz.de/10014290466

How to starve the beast: fiscal and monetary policy rules

Martin, Fernando M. - 2019

Societies often rely on simple rules to restrict the size and behavior of governments. When fiscal and monetary policies are conducted by a discretionary and profligate government, I find that revenue ceilings vastly outperform debt, deficit and monetary rules, both in effectiveness at curbing...

Persistent link: https://www.econbiz.de/10012137093