Register  |  Login  |  Inquiries  |  Sitemap
Advanced Search
Journal of Economic Integration 2002 September;17(3) :570-595.
DOI: https://doi.org/10.11130/jei.2002.17.3.570
The European Stability Pact and Feedback Policy Effects
Jérôme Creel 
Observatoire Françis des Conjonctures Economiques
Copyright ©2002 Journal of Economic Integration
ABSTRACT
With a two-country dynamic model in a monetary union with wealth private behaviors, we study the implications of public debt on monetary and fiscal policies. The model used has Keynesian features in the short run and Wicksellian ones in the long run. We analyse the effects of asymmetric fiscal policies in Euroland and show that such a situation creates two feedback effects which reduce the efficiency of economic policies. First, because of the inability of one government to implement an expansionary fiscal policy, the other government has to substitute for it to reach economic targets. Second, the ECB's involvement in macroeconomic stabilisation will be exacerbated. The more substantial these effects, the more coordination is needed between European governments and the ECB. JEL Classifications (E17, E63, H63)
Keywords: EMU | Stability and Growth Pact | Monetary Policy | Fiscal Policy | Public Debt
TOOLS
PDF Links  PDF Links
Full text via DOI  Full text via DOI
Download Citation  Download Citation
Supplement  Supplement
  E-Mail
Share:      
METRICS
1
Crossref
0
Scopus
1,360
View
4
Download
Editorial Office
Center for Economic Integration, Sejong Institution, Sejong University, 209, Neungdong-Ro, Gwangjin-Gu,
Seoul, 05006, Korea
TEL : +82-2-3408-3338    FAX : +82-2-3408-3338   E-mail : jei@sejong.ac.kr
Browse Articles |  Current Issue |  For Authors and Reviewers |  About
Copyright© by Center for Economic Integration. All right reserved.