Macroeconomic Policy in the European Monetary Union
From the Old to the New Stability and Growth Pact
Providing readers with a multi-faceted assessment of the implementation of fiscal policies in the euro zone and their macroeconomic effects five years after the inception of the euro, this book, international in perspective and scope, is the first reliable reference source for discussions in this area for both academics and policy makers.
Comprising contributions from distinguished researchers from different European countries and institutions the issues addressed include the:
- monetary and fiscal policy-mix
- evolution and control of fiscal aggregates over the business cycle and their implications for the SGP rules
- accountability of debt evolution
- financial spill-over of national fiscal policies
- measurement and assessment of automatic stabilizers.
Based on empirical evidence as well as being firmly rooted in theoretical analyses and giving particular emphasis to the constraint of the Stability and Growth Pact on the one hand and the presence of a single monetary policy on the other, this book is an invaluable tool students and researchers engaged with macroeconomic stabilization and monetary and fiscal policy interactions, as well as professionals in the public sector and the financial institutions of the EU.
Table of Contents
1. Introduction Part 1: Macroeconomic Governance in the EMU 2. Fiscal Policy and Implementation in EMU: From Maastricht to the SGP Reform and Beyond 3. Macroeconomic Adjustment in the Euro Area: The Role of Fiscal Policy Part 2: Empirical Analyses of National Fiscal Stances 4. Measuring and Assessing Fiscal Automatic Stabilizers 5. Getting Measures of Fiscal Stance Right for the New SGP 6. Testing the Fiscal Theory of the Price Level for European Countries: A Cointegrated VAR Approach Part 3: Fiscal Policy and the EMU Countries - Heterogeneity, Interdependence and Divergence 7. Fiscal Stabilization and the SGP Constraints: Why Size Matters 8. Assessing Financial Spillovers of National Fiscal Policies 9. Inflation Divergence and Public Deficits in a Monetary Union