Downloading the Stability Pact in Germany

Jani Kaarlejärvi

Chapter 4 in Fiscal Policy without a State in EMU?, 2007, pp 86-126 from Palgrave Macmillan

Abstract: Abstract The primary politico-economic debate on the implementation (downloading) of the Stability Pact has focused on the quantitative analysis of the extent to which national economies have met the numerical convergence criteria for achieving economic stability in EMU. However, much less attention has been directed to the qualitative analysis of whether national economies have adequately made adjustments to safeguard this stability. Given the European and national processes around the formation (uploading) of the Stability Pact, this empirical research proceeds to an evaluation of the impact of the implementation of the Stability Pact in Germany in 1998–2002. In this chapter, a study is made of how and to what extent the German economy has faced and responded to the need for national adjustments under the Stability Pact in EMU. Buti and Sapir have also highlighted the importance of the study of the national implementation of common economic policy objectives. In their opinion, “there is increasing support for the view that budgetary institutions are important determinants of fiscal performance. Even though inadequate institutions per se may not create deficits, they tend to delay the necessary budgetary adjustments following adverse shocks. Measures which change institutional budgetary processes have a direct impact on the rules and practices according to which budgets are drawn up, adopted and implemented.”1

Keywords: Interest Rate; Monetary Policy; Fiscal Policy; Euro Area; Public Debt (search for similar items in EconPapers)
Date: 2007
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

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:pal:palchp:978-0-230-59010-6_4

Ordering information: This item can be ordered from
http://www.palgrave.com/9780230590106

DOI: 10.1057/9780230590106_4

Access Statistics for this chapter

More chapters in Palgrave Macmillan Books from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().