The Political Economy of Fiscal Policy in EMU

Bob HanckŽ
Additional contact information
Bob HanckŽ: European Institute, London School of Economics and Political Science

European Political Economy Review, 2003, vol. 1, issue Spring, 5-14

Abstract: This paper treats low inflation in EMU as a collective action problem for Ecofin. The SGP and more broadly the BEPG, operating against a background of the ECB and wage-setting, are the instruments for this. The ECB delegates sanctioning to the member-states while pre-serving the authority to set interest rates. Labour relations systems in different countries pursue disinflationary wage settlements. The BEPG (including the SGP) therefore have to be understood as a critical element in a signalling game between the ECB, Ecofin and the wage-setting systems.

Keywords: EMU; fiscal policy; Stability; Growth Pact (search for similar items in EconPapers)
JEL-codes: E58 F50 H30 O40 (search for similar items in EconPapers)
Date: 2003
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.ugbs.org/weru/eper/vol1/no1/hancke.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:epe:journl:v:1:y:2003:i:spring:p:5-14

Access Statistics for this article

More articles in European Political Economy Review from European Political Economy Infrastructure Consortium Contact information at EDIRC.
Bibliographic data for series maintained by Prof.Dr.Sebastian Dullien ().