EconStor >
Verein für Socialpolitik >
Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft - Lektionen aus der Krise >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/48693
  
Title:Towards Expenditure Rules and Fiscal Sanity in the Euro Area PDF Logo
Authors:Schuknecht, Ludger
Hauptmeier, Sebastian
Sanchez Fuéntes, Jésus
Issue Date:2011
Series/Report no.:Beiträge zur Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft: Lektionen aus der Krise - Session: Sovereign Debt Crises II B2-V3
Abstract:The study looks at primary expenditure developments in the euro area, its three largest members and four “macro-imbalances” countries for the period 1999- 2009. It compares actual expenditure trends with those that would have prevailed if countries had followed neutral policies based on expenditure rules since the start of EMU. It also calculates the implications for debt trends. It finds that, all sample countries except Germany applied expansionary expenditure policies. This resulted in much higher expenditure and debt paths compared to a counterfactual neutral expenditure stance. Simple and prudent rules-based spending policies could have led to much safer fiscal positions much more in line with the EU’s Stability and Growth Pact rules.
Subjects:Expenditure policies
public debt
expenditure rules
sustainability
fiscal stance
JEL:A10
A11
B22
Document Type:Conference Paper
Appears in Collections:Jahrestagung des Vereins für Socialpolitik 2011: Die Ordnung der Weltwirtschaft - Lektionen aus der Krise

Files in This Item:
File Description SizeFormat
VfS_2011_pid_87.pdf2.05 MBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/48693

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.