Ranking Fiscal Policy Rules: the Golden Rule of Public Finance vs. the Stability and Growth Pact

Jerome Creel

SciencePo Working papers Main from HAL

Abstract: The purpose of this note is to compare the characteristics of the actual Stability and Growth Pact with that of a European "modified golden rule". The latter would consist in achieving in each EU country a cyclically-adjusted net-of-public-investment balance. The benchmark for comparison is the classification adopted by Kopits and Symansky (1998) on "ideal fiscal rules". This classification has been used by Buti et al. (2003) in order to demonstrate the "ideal character" of the actual Stability and Growth Pact and thus legitimate only slight modifications to the Pact. I intend to show rather, that the "modified golden rule" is a better fiscal rule than the actual Pact.

Date: 2003-07
Note: View the original document on HAL open archive server: https://hal-sciencespo.archives-ouvertes.fr/hal-00972778
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
https://hal-sciencespo.archives-ouvertes.fr/hal-00972778/document (application/pdf)

Related works:
Working Paper: Ranking Fiscal Policy Rules: the Golden Rule of Public Finance vs. the Stability and Growth Pact (2003)
Working Paper: Ranking Fiscal Policy Rules: the Golden Rule of Public Finance vs. the Stability and Growth Pact (2003)
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:hal:spmain:hal-00972778

Access Statistics for this paper

More papers in SciencePo Working papers Main from HAL
Bibliographic data for series maintained by Contact - Sciences Po Departement of Economics ().