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It is often argued that fiscal stabilisation in the euro area compares unfavourably with the US, not least because of the perceived limitations of the Stability and Growth Pact. This paper qualifies this perception by taking a closer look at fiscal policy making since the mid-1990s. It examines...
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The aim of this paper is to assess the effectiveness of risk sharing mechanisms in the euro area and whether a … supranational fiscal risk sharing mechanism could insure countries against very severe downturns. Using an unbalanced panel of 15 … euro area countries over the period 1979-2010, the results of the paper show that: (i) the effectiveness of risk sharing …
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The European Redemption Pact (ERP), a proposal of the German Council of Economic Experts, describes an exit strategy from the debt crisis which currently plagues the euro area. The pact includes a binding commitment of all participating countries to bring public debt ratios below the reference...
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One possible solution to the sovereign debt crisis is the European Redemption Pact (ERP) proposed by the German Council of Economic Experts. The ERP provides sustainable financing conditions for participating sovereigns to facilitate bringing public debt ratios below the reference value of 60%...
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