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The EMU Rules and Goodhart’s Law

In: Dollars, Euros, and Debt

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  • Vito Tanzi

Abstract

Neither the measurement of fiscal deficits nor that of public debts is like the measurement of a person’s weight or height, for which there are clear, objective standards for measurements. It is often not easy to connect fiscal deficits with changes in public debt. The IMF has recently dealt again, officially, with the difficult question of “fiscal transparency,” because in its own words “the degree of fiscal transparency has been shown to be an important predictor of a country’s fiscal credibility and performance” (see IMF, 2012b, p. 5).

Suggested Citation

  • Vito Tanzi, 2013. "The EMU Rules and Goodhart’s Law," Palgrave Macmillan Books, in: Dollars, Euros, and Debt, chapter 6, pages 51-62, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-137-34647-6_6
    DOI: 10.1057/9781137346476_6
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