The Political Stability and Growth Pact is Dead: Long Live the Economic Stability and Growth Pact*

Patrick Leblond

Journal of Common Market Studies, 2006, vol. 44, issue 5, 969-990

Abstract: Euro area countries suspended the excessive deficit procedure (EDP) of the Stability and Growth Pact in November 2003. Surprisingly perhaps, long‐term European government bond‐holders did not react: yields barely moved. Owing to its political nature, the EDP does not matter for investors. What matters is the implicit economic pact that investors have made with Member State governments.

Date: 2006
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1111/j.1468-5965.2006.00670.x

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:bla:jcmkts:v:44:y:2006:i:5:p:969-990

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0021-9886

Access Statistics for this article

Journal of Common Market Studies is currently edited by Jim Rollo and Daniel Wincott

More articles in Journal of Common Market Studies from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().