El papel de la política fiscal en los países de la UEM y las leyes de estabilidad presupuestaria. Comparación de distintas reglas

Jorge Uxó González and Jesús Arroyo Fernández Mª
Additional contact information
Jorge Uxó González: Universidad CEU San Pablo, Madrid
Jesús Arroyo Fernández Mª: Universidad CEU San Pablo, Madrid

EKONOMIAZ. Revista vasca de Economía, 2007, vol. 66, issue 03, 372-402

Abstract: This paper deals with the role of fiscal policy in the Euro area economic policy framework. The centralisation of monetary policy, applied according to euro zone values, generates a loss of stabilisation capacity, since cyclic conditions can be different in each economy. A more active fiscal policy based on each country¿s situation could compensate for the loss of stabilisation in the capacity in monetary policy. This function, however, cannot be solely performed by automatic stabilisers, following a strict interpretation of the Stability and Growth Pact. European governments should therefore have more capacity for altering their budgetary balances according to their short-term economic situations. We have simulated the dynamics following a specific shock in one country belonging to the monetary union with different fiscal policy rules. The main result is that a More Activist Fiscal Policy Rule could improve the stabilisation capacity of national economies when compared with a strict application of the Stability and Growth Pact or with the Spanish Budget Stability Law (before the 2006 reform).

Keywords: fiscal policy; economic policy rules; Economic and Monetary Union; automatic stabilisers; Budget Stability Law (search for similar items in EconPapers)
JEL-codes: L53 M13 (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.ogasun.ejgv.euskadi.net/r51-k86aekon/es ... publ=61&registro=886 complete text (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:ekz:ekonoz:2007317

Ordering information: This journal article can be ordered from
Dpto. de Hacienda y Finanzas, Gobierno Vasco, C/Donostia-San Sebastián, 1, 01010 Vitoria-Gasteiz, Spain

Access Statistics for this article

More articles in EKONOMIAZ. Revista vasca de Economía from Gobierno Vasco / Eusko Jaurlaritza / Basque Government Contact information at EDIRC.
Bibliographic data for series maintained by Iñaki Treviño ().