EconPapers    
Economics at your fingertips  
 

Towards Expenditure Rules and Fiscal Sanity in the Euro Area

Ludger Schuknecht (), Sebastian Hauptmeier and Antonio Jesus Sanchez Fuentes ()

VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis from Verein für Socialpolitik / German Economic Association

Abstract: The study looks at primary expenditure developments in the euro area, its three largest members and four “macro-imbalances” countries for the period 1999- 2009. It compares actual expenditure trends with those that would have prevailed if countries had followed neutral policies based on expenditure rules since the start of EMU. It also calculates the implications for debt trends. It finds that, all sample countries except Germany applied expansionary expenditure policies. This resulted in much higher expenditure and debt paths compared to a counterfactual neutral expenditure stance. Simple and prudent rules-based spending policies could have led to much safer fiscal positions much more in line with the EU’s Stability and Growth Pact rules.

Keywords: Expenditure policies; public debt; expenditure rules; sustainability; fiscal stance (search for similar items in EconPapers)
JEL-codes: A10 A11 B22 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23) Track citations by RSS feed

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/48693/1/VfS_2011_pid_87.pdf (application/pdf)

Related works:
Journal Article: Towards expenditure rules and fiscal sanity in the euro area (2011) Downloads
Working Paper: Towards expenditure rules and fiscal sanity in the euro area (2010) 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:zbw:vfsc11:48693

Access Statistics for this paper

More papers in VfS Annual Conference 2011 (Frankfurt, Main): The Order of the World Economy - Lessons from the Crisis from Verein für Socialpolitik / German Economic Association Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().

 
Page updated 2020-11-26
Handle: RePEc:zbw:vfsc11:48693