Tradable Deficit Permits

Alessandra Casella

Chapter 16 in The Stability and Growth Pact, 2001, pp 394-413 from Palgrave Macmillan

Abstract: Abstract The current provisions of the Stability and Growth Pact (hereafter, SGP) advocate balanced budgets in the longer term and specify a ceiling for deficit spending of 3 per cent of GDP for each member of the European Monetary Union. A violation of the ceiling will trigger warnings and eventually penalties (unless exceptional circumstances can be invoked). In this form, the Pact suffers from several shortcomings that will limit its effectiveness and impose exceptional costs on at least some of the member countries.

Keywords: Balance Budget; Order Book; Tradable Deficit; Emission Permit; Tradable Permit (search for similar items in EconPapers)
Date: 2001
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DOI: 10.1057/9780230629264_16

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