Implementing the Stability and Growth Pact : Enforcement and Procedural Flexibility /

The paper analyzes some key policy trade-offs involved in the implementation of the Stability and Growth Pact. Greater "procedural" flexibility in the Pact's implementation may improve welfare. Procedural flexibility designates the enforcer's room to apply judgment on underlying...

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Автор: Beetsma, Roel
Інші автори: Debrun, Xavier
Формат: Журнал
Мова:English
Опубліковано: Washington, D.C. : International Monetary Fund, 2005.
Серія:IMF Working Papers; Working Paper ; No. 2005/059
Онлайн доступ:Full text available on IMF
Опис
Резюме:The paper analyzes some key policy trade-offs involved in the implementation of the Stability and Growth Pact. Greater "procedural" flexibility in the Pact's implementation may improve welfare. Procedural flexibility designates the enforcer's room to apply judgment on underlying policies and to set a consolidation path that does not discourage high-quality measures. Budgetary opaqueness may hinder the qualitative assessment of fiscal policy; therefore, better monitoring and greater transparency would increase the benefits from procedural flexibility. Overall, a simple deficit rule with conditional procedural flexibility can contain excessive deficits, lower unproductive spending, and increase high-quality outlays.
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Фізичний опис:1 online resource (34 pages)
Формат:Mode of access: Internet
ISSN:1018-5941
Доступ:Electronic access restricted to authorized BRAC University faculty, staff and students