How to Avoid a Darkening Debt Storm in the Caribbean: Lessons from the Banking Union in the Euro Area

Andrew Hughes Hallett, Svend E. Hougaard Jensen

Research output: Contribution to conferencePaperResearchpeer-review

Abstract

Using the euro area and the Eastern Caribbean Currency Union as case studies, this chapter argues that a comprehensive policy framework should comprise not only a rule for fiscal policy but also, and equally important, a broader set of strategies designed to improve competitiveness and economic growth. Specifically, we stress the need to prevent a build-up of debt, public and private, by introducing a mechanism to ensure that public and private borrowing is consistent
with an overall macroeconomic strategy. This introduces elements of a banking union framework, tied into Europe‟s notion of a fiscal and competitiveness compact. We use this framework to show how different policy institutions can retain different priorities in their own economies, and hence individual policies that are internally consistent, while also maintaining a degree of flexibility that allows them to deal with problems as they arise.
Using the euro area and the Eastern Caribbean Currency Union as case studies, this chapter argues that a comprehensive policy framework should comprise not only a rule for fiscal policy but also, and equally important, a broader set of strategies designed to improve competitiveness and economic growth. Specifically, we stress the need to prevent a build-up of debt, public and private, by introducing a mechanism to ensure that public and private borrowing is consistent
with an overall macroeconomic strategy. This introduces elements of a banking union framework, tied into Europe‟s notion of a fiscal and competitiveness compact. We use this framework to show how different policy institutions can retain different priorities in their own economies, and hence individual policies that are internally consistent, while also maintaining a degree of flexibility that allows them to deal with problems as they arise.

Conference

ConferenceThe 46th Annual Monetary Studies Conference
Number46
CountryTrinidad and Tobago
CityPort of Spain
Period18/11/201420/11/2014
Internet address

Bibliographical note

CBS Library does not have access to the material

Keywords

    Cite this

    Hallett, A. H., & Hougaard Jensen, S. E. (2014). How to Avoid a Darkening Debt Storm in the Caribbean: Lessons from the Banking Union in the Euro Area. Paper presented at The 46th Annual Monetary Studies Conference , Port of Spain, Trinidad and Tobago.
    Hallett, Andrew Hughes ; Hougaard Jensen, Svend E./ How to Avoid a Darkening Debt Storm in the Caribbean : Lessons from the Banking Union in the Euro Area. Paper presented at The 46th Annual Monetary Studies Conference , Port of Spain, Trinidad and Tobago.
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    abstract = "Using the euro area and the Eastern Caribbean Currency Union as case studies, this chapter argues that a comprehensive policy framework should comprise not only a rule for fiscal policy but also, and equally important, a broader set of strategies designed to improve competitiveness and economic growth. Specifically, we stress the need to prevent a build-up of debt, public and private, by introducing a mechanism to ensure that public and private borrowing is consistentwith an overall macroeconomic strategy. This introduces elements of a banking union framework, tied into Europe‟s notion of a fiscal and competitiveness compact. We use this framework to show how different policy institutions can retain different priorities in their own economies, and hence individual policies that are internally consistent, while also maintaining a degree of flexibility that allows them to deal with problems as they arise.",
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    author = "Hallett, {Andrew Hughes} and {Hougaard Jensen}, {Svend E.}",
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    Hallett, AH & Hougaard Jensen, SE 2014, 'How to Avoid a Darkening Debt Storm in the Caribbean: Lessons from the Banking Union in the Euro Area' Paper presented at, Port of Spain, Trinidad and Tobago, 18/11/2014 - 20/11/2014, .

    How to Avoid a Darkening Debt Storm in the Caribbean : Lessons from the Banking Union in the Euro Area. / Hallett, Andrew Hughes; Hougaard Jensen, Svend E.

    2014. Paper presented at The 46th Annual Monetary Studies Conference , Port of Spain, Trinidad and Tobago.

    Research output: Contribution to conferencePaperResearchpeer-review

    TY - CONF

    T1 - How to Avoid a Darkening Debt Storm in the Caribbean

    T2 - Lessons from the Banking Union in the Euro Area

    AU - Hallett,Andrew Hughes

    AU - Hougaard Jensen,Svend E.

    N1 - CBS Library does not have access to the material

    PY - 2014

    Y1 - 2014

    N2 - Using the euro area and the Eastern Caribbean Currency Union as case studies, this chapter argues that a comprehensive policy framework should comprise not only a rule for fiscal policy but also, and equally important, a broader set of strategies designed to improve competitiveness and economic growth. Specifically, we stress the need to prevent a build-up of debt, public and private, by introducing a mechanism to ensure that public and private borrowing is consistentwith an overall macroeconomic strategy. This introduces elements of a banking union framework, tied into Europe‟s notion of a fiscal and competitiveness compact. We use this framework to show how different policy institutions can retain different priorities in their own economies, and hence individual policies that are internally consistent, while also maintaining a degree of flexibility that allows them to deal with problems as they arise.

    AB - Using the euro area and the Eastern Caribbean Currency Union as case studies, this chapter argues that a comprehensive policy framework should comprise not only a rule for fiscal policy but also, and equally important, a broader set of strategies designed to improve competitiveness and economic growth. Specifically, we stress the need to prevent a build-up of debt, public and private, by introducing a mechanism to ensure that public and private borrowing is consistentwith an overall macroeconomic strategy. This introduces elements of a banking union framework, tied into Europe‟s notion of a fiscal and competitiveness compact. We use this framework to show how different policy institutions can retain different priorities in their own economies, and hence individual policies that are internally consistent, while also maintaining a degree of flexibility that allows them to deal with problems as they arise.

    KW - The Euro area

    KW - The Eastern Caribbean Currency Union

    KW - Public debt

    KW - Private debt

    KW - Fiscal rules

    KW - Banking union

    KW - Structural reforms

    M3 - Paper

    ER -

    Hallett AH, Hougaard Jensen SE. How to Avoid a Darkening Debt Storm in the Caribbean: Lessons from the Banking Union in the Euro Area. 2014. Paper presented at The 46th Annual Monetary Studies Conference , Port of Spain, Trinidad and Tobago.