Abstract
This paper suggests an alternative framework for achieving fiscal discipline in the Euro Area. It is argued that national fiscal policies should focus on a long-term objective, such as a public debtto-GDP ratio, and the common monetary policy
should focus on a short-term objective, such as price and output stability. The result is a self-stabilising set-up where the enforcement problem has largely been resolved.
should focus on a short-term objective, such as price and output stability. The result is a self-stabilising set-up where the enforcement problem has largely been resolved.
Original language | English |
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Journal | Politik |
Volume | 16 |
Issue number | 1 |
Pages (from-to) | 51-58 |
Number of pages | 8 |
ISSN | 1604-0058 |
DOIs | |
Publication status | Published - 2013 |