The Stability Pact - Rationales, Problems, Alternatives

Arbeitspapier

We analyze economic rationales for, and possible alternatives to, the Stability and Growth Pact (SGP). We identify various cross-country spillover effects and domestic policy failures as potential rationales. The two sets of problems suggest different corrective measures, and different measures than those applied in the context of SGP. We contrast the "legalistic" perspective adopted in the Pact with a more incentive-based approach and discuss how the legalistic perspective gives rise to enforcement problems in connection with the implementa- tion of the SGP's sanctions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Paper ; No. 06.03

Classification and Topics

• Classification: Wirtschaft ; Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy ; International Monetary Arrangements and Institutions ; International Policy Coordination and Transmission ; National Budget, Deficit, and Debt: General
• Subject: Stability and Growth Pact ; spillover effects ; policy failures ; Pigouvian taxes ; enforcement of Stability Pact ; Spillover-Effekt ; Finanzpolitik ; Geldpolitik ; Internalisierung externer Effekte ; Europäischer Stabilitätsmechanismus ; Rechtsdurchsetzung

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Lindbeck, Assar ; Niepelt, Dirk
• Event: Veröffentlichung
• (who): Swiss National Bank, Study Center Gerzensee
• (where): Gerzensee
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/128038
• Last update: 10.03.2025, 11:45 AM CET