IDEAS home Printed from https://ideas.repec.org/a/ris/integr/0209.html
   My bibliography  Save this article

The European Stability Pact and Feedback Policy Effects

Author

Listed:
  • Creel, Jérôme

    (Observatoire Françis des Conjonctures Economiques)

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.

Suggested Citation

  • Creel, Jérôme, 2002. "The European Stability Pact and Feedback Policy Effects," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 17, pages 570-595.
    • Handle: RePEc:ris:integr:0209
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:wpspec:info:hdl:2441/2085 is not listed on IDEAS
    2. Jérôme Creel, 2002. "Strategic interactions between monetary and fiscal policies: a case study for the European Stability Pact," Post-Print hal-00972776, HAL.
    3. Bruck, Tilman & Zwiener, Rudolf, 2006. "Fiscal policy rules for stabilisation and growth: A simulation analysis of deficit and expenditure targets in a monetary union," Journal of Policy Modeling, Elsevier, vol. 28(4), pages 357-369, May.
    4. Jérôme Creel & Jacques Le Cacheux, 2006. "La nouvelle désinflation compétitive européenne," Revue de l'OFCE, Presses de Sciences-Po, vol. 98(3), pages 7-36.
    5. repec:spo:wpmain:info:hdl:2441/3221 is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/5221 is not listed on IDEAS
    7. repec:spo:wpecon:info:hdl:2441/2085 is not listed on IDEAS
    8. repec:spo:wpmain:info:hdl:2441/2085 is not listed on IDEAS
    9. repec:hal:spmain:info:hdl:2441/3221 is not listed on IDEAS
    10. repec:spo:wpmain:info:hdl:2441/5221 is not listed on IDEAS
    11. repec:hal:wpspec:info:hdl:2441/3221 is not listed on IDEAS
    12. repec:spo:wpecon:info:hdl:2441/3221 is not listed on IDEAS
    13. repec:hal:spmain:info:hdl:2441/2085 is not listed on IDEAS

    More about this item

    Keywords

    EMU; Stability and Growth Pact; Monetary Policy; Fiscal Policy; Public Debt.;
    All these keywords.

    JEL classification:

    • E17 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Forecasting and Simulation: Models and Applications
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ris:integr:0209. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Yunhoe Kim (email available below). General contact details of provider: https://edirc.repec.org/data/desejkr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.