Fiscal Policy in Enlarged European Union: Rules vs. discretion.
|Principal investigator:||doc. Ing. Ondřej Schneider MPhil., Ph.D.|
|Description:||The European Union embarked in 1992 on an ambitious project whereby it has vested some of national economic policy tools with supranational institutions. Monetary policy now lies within the rein of the European Central Bank. Other economic policy instruments have proven to be much more difficult to harmonize, fiscal policy being perhaps the most difficult of them all. The EU has created a sophisticated, but now embattled mechanism of the Stability and Growth Pact. The SGP is often blamed for being too rigid and not providing enough flexibility to national governments.
The project discusses the role and relevance of rules oriented macroeconomic policy, with a special attention given to fiscal policy, implications of rule-based policies for long term macroeconomic sustainability and the origin, current situation and perspectives of the European Union's macroeconomic rules and procedures. The project will give special attention to the political economy aspects of macroeconomic policy framework discussion. The project will analyze whether the framework established for "old" EU members is suitable for accession countries as well, whether the European fiscal rules are flexible enough given the needs and character of the transitional economies.
|Participation:||Petr Hedbávný, Martin Gregor|
|Work in grant:||Everything dealing with fiscal policy, economic policy rules, European economic integration. If you are interested come and talk to me.|
|Finance:||Global Development Network|