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- W2477961281 abstract "The European Union economies have embarked on a programme of economic transformation that changes their mode of governance. Rules for monetary policy-making have been fundamentally altered for euro area members and all fifteen are variously bound by Treaty or Protocol to fiscal programmes that have significant implications for the flexibility with which they operate stabilisation policy. The Stability and Growth Pact (SGP) puts clear limits on the size of deficits that can be run, and has a rather loose system of fines associated with it. In this chapter we focus on the likelihood of member countries breaching this criteria and the extent to which changes in monetary policy affect this outcome. In particular we investigate what effects different types of simple monetary policy rules have on a country’s ability to keep within the SGP criteria. One of the most common criticisms of the SGP is that it may be too binding in that governments will be unable to use fiscal stabilisation policies. This chapter throws light on the scope for fiscal activism in stabilising individual EMU economies." @default.
- W2477961281 created "2016-08-23" @default.
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- W2477961281 date "2001-01-01" @default.
- W2477961281 modified "2023-10-07" @default.
- W2477961281 title "Will the SGP Ever Be Breached?" @default.
- W2477961281 doi "https://doi.org/10.1057/9780230629264_10" @default.
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