Pressures on the Stability and Growth Pact from asymmetry in policy
Bibliographic Data
| ID | 6290352 |
|---|---|
| Authors | David Mayes, David G Mayes (0000-0001-8306-3442, London South Bank University), Matti Virén (0000-0002-6132-3474, Deleted Institution) |
| Year | 2004 |
| Volume | 11 |
| Issue | 5 |
| Pages | 781-797 |
| Publication date | 2004-01-01 |
| Peer Reviewed | Yes |
| Open Access | No |
| Type | ARTICLE |
| Venue | Journal of European Public Policy (JOURNAL) |
| Journal identifiers | ISSN: 1350-1763 • E-ISSN: 1466-4429 |
| Publisher | Informa UK Limited (PUBLISHER • GB) |
| DOI | 10.1080/1350176042000273531 |
| OpenAlex | W2104419351 |
| Language | EN |
| Citations received | 7 |
| References cited | 9 |
We identify pressures on the SGP that stem from asymmetries in economic behaviour and macroeconomic policy in the euro area. The asymmetry in the way the euro economy operates with respect to inflation, growth and unemployment merits an asymmetric policy response. While Eurosystem monetary policy appears to match the concerns, the asymmetry of fiscal policy in the member states means that they tend to develop their stance in a way that is inconsistent with a long-run sustainable balance and debt ratio. This could be because they are persistently too optimistic about growth, thus generating pressure on the deficit limit which they then blame on cyclical causes. However, the main asymmetry is a failure to adjust sufficiently in the up phase of the cycle, either by cutting taxes less or controlling expenditures to offset the unwillingness to raise taxes and control expenditures in the down phase. The asymmetry in the SGP through the excessive deficit procedure helps to offset this political problem
Asymmetry · Blame · Debt · Economics · European union · Fiscal policy · Inflation (cosmology · International economics · Macroeconomics · Member states · Monetary economics · Monetary policy · Stability and Growth Pact · Unemployment · Fiscal Policies and Political Economy · Global Financial Crisis and Policies · Monetary Policy and Economic Impact
The general theory of employment, interest, and money
Discretion versus policy rules in practice
Inflation forecast targeting
Formulation and estimation of stochastic frontier production function models
Cointegration and Threshold Adjustment
Okun's Law
Sectoral Shifts and Cyclical Unemployment
The Relation Between Unemployment and the Rate of Change of Money Wage Rates in the United Kingdom, 1861–1957 1
Beyond the Fringe
| Unique citing works | 7 |
|---|---|
| Citations per year | 0,32 |
| Citation span | 2004 - 2010 (7) |
| Citation velocity | historical |
| Highly cited | No |
| Citation types | Neutral: 7 |