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- W3142236157 abstract "We show analytically that the credibility problem which has affected the European Stability Pact originates from the insufficient distinction between two reasons for having binding fiscal constraints. The first reason deals with the governmentsi?½ tendency to neglect the effects of their fiscal policy on foreign governments (fiscal free-riding). The second reason follows from the governmentsi?½ tendency to raise debt by lowering taxes or increasing expenditures, and then to leave it to their successors (fiscal short-termism). An enforcement mechanism relying on governmentsi?½ collusion works if the fiscal constraints are not calibrated for curing fiscal short-termism but only for preventing fiscal free-riding." @default.
- W3142236157 created "2021-04-13" @default.
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- W3142236157 date "2007-01-01" @default.
- W3142236157 modified "2023-09-27" @default.
- W3142236157 title "Breaking the stability pact: was it predictable?" @default.
- W3142236157 hasPublicationYear "2007" @default.
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