Publication detail

Does The EU need a Better Fiscal Pact?

Author(s): doc. Ing. Ondřej Schneider MPhil., Ph.D., Hedbavny, Petr; Zapal, Jan
Type: Chapter in book
Year: 2004
Number:
ISSN / ISBN: ISBN 80-86732-35-5
Published in: in: Rozvoj české společnosti v Evropské unii: Ekonomie - Politologie. Prázová, Schneider, Kotábová, s. 111-129, Karlova Universita,
Publishing place: Praha, Matfyz Press
Keywords:
JEL codes:
Suggested Citation:
Grants: IES Research Framework (1999-2004) "The Czech Economy in the Context of European Integration and Globalization"
Abstract: In this paper, we set out to examine an efficient fiscal-policy framework for a monetary union. We illustrate that fiscal policy’s bias toward budget deficit only temporarily ceased at the end of the 20th century as European countries endeavored to qualify for euro-zone membership, which compelled strict limits on budgetary deficits. We then explore which mechanisms might instill a sense of fiscal disciple in governments. We find that most mechanisms suffer from the incentive-incompatible setup whereby governments restrict their own fiscal-policy freedom.
Downloadable: The paper

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