 The Lisbon strategy, macroeconomic stability and the dilemma of governance with governments; or why Europe is not becoming the world's most dynamic economyStefan Collignon International Journal of Public Policy, 2008, vol. 3, issue 1/2, 72-99 Abstract: Due to collective action problems, the Eurozone is stuck in a sub-optimal macropolicy mix of too expansionary fiscal policy and too restrictive monetary policy. Although the Lisbon strategy pays lip service to macroeconomic policy coordination, no mechanisms, institutions or effective rules are established in order to overcome the collective action problem. Empirically, the failure is demonstrated by comparing the Eurozone policy mix with the US policy mix and attributing it to the low investment performance which resulted in low average GDP growth and low average productivity growth – contrary to the aims of the Lisbon strategy to make the EU the world's most dynamic economy. The paper also argues that in order to overcome these difficulties, a proper government for the EU is needed. More delegation to the European level is legitimate only if European citizens can exert their democratic rights. Keywords: European integration; Stability and Growth Pact; macroeconomic policy; Lisbon strategy; European Union; EU governance; European economy; Eurozone; expansionary fiscal policy; restrictive monetary policy; collective action; policy mix. (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:ids:ijpubp:v:3:y:2008:i:1/2:p:72-99 Access Statistics for this article More articles in International Journal of Public Policy from Inderscience Enterprises Ltd |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
School of Business at Örebro University.