Is There an Alternative to the Fiscal Compact for Conducting Fiscal Policy in the Euro Area?

Andrew Hughes Hallett, Svend E. Hougaard Jensen

Research output: Contribution to journalJournal articleResearchpeer-review


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.
Original languageEnglish
Issue number1
Pages (from-to)51-58
Number of pages8
Publication statusPublished - 2013

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