Arbeitspapier
Maastricht criteria versus stability pact
It is generally believed that fiscal consolidations should occur prior to a country's admission to the European Monetary Union (EMU). This paper argues that the fiscal Maastricht Criteria require badly timed, costly adjustments while not guaranteeing sustained fiscal restraint. An effective Stability Pact is not only necessary, but should replace the Maastricht Criteria altogether. These conclusions are based on simulations scrutinising the effects both of contractionary fiscal policies and of joining a monetary union. In a case study type analysis it is shown that there is a strong case for both policy changes to happen at the same time.
- Sprache
-
Englisch
- Erschienen in
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Series: Centre for Economic Research Working Paper Series ; No. WP05/06
- Klassifikation
-
Wirtschaft
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
International Policy Coordination and Transmission
Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation: Models and Applications
- Thema
-
transition to a monetary union
fiscal policy
European Monetary Union
regime change
simulation
MULTIMOD
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Bohn, Frank
- Ereignis
-
Veröffentlichung
- (wer)
-
University College Dublin, Department of Economics
- (wo)
-
Dublin
- (wann)
-
2005
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:20 MESZ
Datenpartner
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Objekttyp
- Arbeitspapier
Beteiligte
- Bohn, Frank
- University College Dublin, Department of Economics
Entstanden
- 2005