Skip to main content Accessibility help
×
Home
Hostname: page-component-684899dbb8-rbzxz Total loading time: 0.418 Render date: 2022-05-19T19:48:48.106Z Has data issue: true Feature Flags: { "shouldUseShareProductTool": true, "shouldUseHypothesis": true, "isUnsiloEnabled": true, "useRatesEcommerce": false, "useNewApi": true }

Editors' introduction

Published online by Cambridge University Press:  22 September 2009

R. Beetsma
Affiliation:
Universiteit van Amsterdam
C. Favero
Affiliation:
Università Commerciale Luigi Bocconi, Milan
A. Missale
Affiliation:
Università degli Studi di Milano
V. A. Muscatelli
Affiliation:
University of Glasgow
P. Natale
Affiliation:
Università degli Studi di Milano
P. Tirelli
Affiliation:
Università degli Studi di Milano
Get access

Summary

A few years after the birth of the Economic and Monetary Union (EMU) in Europe, it is still uncertain whether EMU institutions can provide sufficient macroeconomic stability and foster the reforms necessary to stimulate economic growth. The debate among economists and policymakers has focused on three key issues:

  1. Does the Stability and Growth Pact (SGP) provide an adequate framework for the conduct of national fiscal policies or is stricter coordination of fiscal policies desirable? There are three aspects to this debate. First, whether the SGP gives national governments sufficient room for manoeuvre in stabilising domestic economies. Some economists point out that national governments still retain full discretion within the 3% deficit ceiling set in the SGP, whilst others regard the SGP as too rigid to allow for adequate stabilisation policies. As a result, suggestions to soften the SGP or discard it altogether are sometimes floated in the press. Second, whether the SGP approach, which is based on individual country fiscal discipline, will lead to uncoordinated fiscal policies which are detrimental to macroeconomic stability in Euroland. Third, whether discretionary fiscal policies may be insufficiently coordinated and inconsistent with the common monetary policy even if they are consistent with the SGP limits.

  2. Can the ECB provide markets with adequate information about its intentions? Moreover, is the ECB reacting with sufficient competence and flexibility to a rapidly changing macroeconomic environment? The ‘two pillars strategy’ for the conduct of monetary policy, the secrecy surrounding ECB Council decisions and the apparent inertia in the decision-making process have been widely criticised. […]

Type
Chapter
Information
Monetary Policy, Fiscal Policies and Labour Markets
Macroeconomic Policymaking in the EMU
, pp. 1 - 6
Publisher: Cambridge University Press
Print publication year: 2004

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Save book to Kindle

To save this book to your Kindle, first ensure coreplatform@cambridge.org is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

  • Editors' introduction
  • Edited by R. Beetsma, Universiteit van Amsterdam, C. Favero, Università Commerciale Luigi Bocconi, Milan, A. Missale, Università degli Studi di Milano, V. A. Muscatelli, University of Glasgow, P. Natale, Università degli Studi di Milano, P. Tirelli, Università degli Studi di Milano
  • Book: Monetary Policy, Fiscal Policies and Labour Markets
  • Online publication: 22 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511492389.001
Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

  • Editors' introduction
  • Edited by R. Beetsma, Universiteit van Amsterdam, C. Favero, Università Commerciale Luigi Bocconi, Milan, A. Missale, Università degli Studi di Milano, V. A. Muscatelli, University of Glasgow, P. Natale, Università degli Studi di Milano, P. Tirelli, Università degli Studi di Milano
  • Book: Monetary Policy, Fiscal Policies and Labour Markets
  • Online publication: 22 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511492389.001
Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

  • Editors' introduction
  • Edited by R. Beetsma, Universiteit van Amsterdam, C. Favero, Università Commerciale Luigi Bocconi, Milan, A. Missale, Università degli Studi di Milano, V. A. Muscatelli, University of Glasgow, P. Natale, Università degli Studi di Milano, P. Tirelli, Università degli Studi di Milano
  • Book: Monetary Policy, Fiscal Policies and Labour Markets
  • Online publication: 22 September 2009
  • Chapter DOI: https://doi.org/10.1017/CBO9780511492389.001
Available formats
×