By distinguishing between discretionary and non-discretionary fiscal policy, this paper analyses the stability of fiscal rules for EMU countries before and after the Maastricht Treaty. Using both Instrumental Variables and GMM techniques, it turns out that discretionary fiscal policy has...

Bertholt Leeftink investigates whether a potential trade-off exists between budgetary sustainability and budgetary stabilisation and whether monetary union requires closer budgetary co-ordination than currently envisaged. Leeftink argues that the Stability Pact far from limiting member...

Debt levels in the eurozone have reached new record highs. The member countries have tried to cushion the economic consequences of the corona pandemic with a massive increase in government spending. End of 2021 public debt in relation to GDP will approach 100% on average. There are various calls...