Euro area fiscal policies and the crisis

Mathias Trabandt, Maria Grazia Attinasi, Jürgen Stark, Laure Lalouette, Christiane Nickel, Vilém Valenta, Ad van Riet, Nadine Leiner-Killinger, Antonio Afonso, Thomas Warmedinger, Julia Catz, Henri Maurer, Cristina Checherita-Westphal, Michal Slavík and Philipp Rother
Authors registered in the RePEc Author Service: Cristina Checherita Westphal

No 109, Occasional Paper Series from European Central Bank

Abstract: In mid-September 2008, a global financial crisis erupted which was followed by the most serious worldwide economic recession for decades. As in many other regions of the world, governments in the euro area stepped in with a wide range of emergency measures to stabilise the financial sector and to cushion the negative consequences for their economies. This paper examines how and to what extent these crisis-related interventions, as well as the fall-out from the recession, have had an impact on fiscal positions and endangered the longer-term sustainability of public finances in the euro area and its member countries. The paper also discusses the appropriate design of fiscal exit and consolidation strategies in the context of the Stability and Growth Pact to ensure a rapid return to sound and sustainable budget positions. Finally, it reviews some early lessons from the crisis for the future conduct of fiscal policies in the euro area. JEL Classification: E5, E2

Keywords: financial crisis; financial markets; fiscal policies; fiscal stimulus; SGP; Sustainability (search for similar items in EconPapers)
Date: 2010-04
Note: 930374
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (47)

Downloads: (external link)
https://www.ecb.europa.eu//pub/pdf/scpops/ecbocp109.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ecb:ecbops:2010109

Access Statistics for this paper

More papers in Occasional Paper Series from European Central Bank 60640 Frankfurt am Main, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Official Publications ().