This paper studies the implications for the European Central Bank (ECB) of the new EU fiscal framework, focusing on five aspects where monetary and fiscal policies intersect: (1) fiscal dominance over monetary policy; (2) fiscal drag created by the new framework; (3) moral hazard created by very...

This paper studies the implications for the European Central Bank (ECB) of the new EU fiscal framework, focusing on five aspects where monetary and fiscal policies intersect: (1) fiscal dominance over monetary policy; (2) fiscal drag created by the new framework; (3) moral hazard created by very...

Performance-based budgeting by focusing on 'what works', as opposed to whether money has been properly spent, aims to improve the quality of public spending. This study examines how successful the approach has been in the EU, looking at the multi-annual financial framework and the Recovery and...

Performance-based budgeting by focusing on 'what works', as opposed to whether money has been properly spent, aims to improve the quality of public spending. This study examines how successful the approach has been in the EU, looking at the multi-annual financial framework and the Recovery and...

Using a panel of 21 OECD countries and 40 years of annual data, we find that countries with similar government budget positions tend to have business cycles that fluctuate more closely. That is, fiscal convergence (in the form of persistently similar ratios of government surplus/deficit to GDP)...

The notes in this compilation by key monetary experts discuss the main financial stability threats of unconventional monetary policies in an environment of low interests rates and the interrelation between financial stability and monetary policy at the current juncture. The notes have been...

The notes in this compilation by key monetary experts discuss the main financial stability threats of unconventional monetary policies in an environment of low interests rates and the interrelation between financial stability and monetary policy at the current juncture. The notes have been...

The notes in this compilation analyse the potential side effects of the ECB expanded asset purchase programme (Quantitative Easing or QE) by focusing on the channels through which monetary policy may affect the distribution of income and wealth, e.g by favouring financial rather than labour...