EconPapers    
Economics at your fingertips  
 

Do we need fiscal rules?

Catherine Mathieu () and Henri Sterdyniak ()

No 2012-08, Sciences Po publications from Sciences Po

Abstract: The public finances crisis has brought binding fiscal rules proposals back to the forefront. The paper analyses their justifications and specifications, either in a classical or in a Keynesian framework. In the recent period there is no evidence that public deficits were caused by fiscal indiscipline and induced too high interest rates; there is no evidence that economically relevant rules can be designed. The paper provides in analysis of fiscal rules implemented either at country level (like the UK golden rule), or at the EU level (the Stability and Growth Pact). The paper shows that fiscal rules did not work before and during the crisis. The paper discusses the EU project, the “New Fiscal Pact”, which risks to paralyse fiscal policies and to prevent economic stabilisation. The priority today is not to strengthen public finance discipline but to question economic developments which make public deficits necessary to support output.

Keywords: fiscal policy; fiscal rules (search for similar items in EconPapers)
JEL-codes: E62 (search for similar items in EconPapers)
Date: 2012-02
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://spire.sciencespo.fr/hdl:/2441/eu4vqp9ompql ... ources/wp2012-08.pdf (application/pdf)

Related works:
Journal Article: Do we need fiscal rules? (2013) Downloads
Working Paper: Do we need fiscal rules? (2013) Downloads
Working Paper: Do we need fiscal rules? (2013) Downloads
Working Paper: Do we need fiscal rules? (2012) Downloads
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:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09j0h168m2j

Access Statistics for this paper

More papers in Sciences Po publications from Sciences Po Contact information at EDIRC.
Bibliographic data for series maintained by Spire @ Sciences Po Library ().

 
Page updated 2019-07-22
Handle: RePEc:spo:wpmain:info:hdl:2441/eu4vqp9ompqllr09j0h168m2j