European Commission/Report on Public Finances in EMU 2016/Institutional Paper 045 December 2016
This report (Part IV) discusses the methodological issues related to the assessment of the euro area fiscal stance. As a general rule, this is done against the objectives of short-term stabilisation of the economy and long-term sustainability of public finances. The interplay between these two objectives and the aggregation issues may prove very complex and the report provides analytical food for thought by raising methodological questions, listing possible solutions and highlighting their strengths and weaknesses. The report shows also that an appropriate geographical configuration of the aggregate fiscal stance, together with an emphasis on government investments, would benefit the euro area. It would allow a prudent use of the fiscal space where it is available, with positive spillovers to the countries with no fiscal space. It would also be conducive to an improvement in the composition of fiscal policy.
Σχετικές Αναρτήσεις
- European Commission, (2015), “Report on Public Finances in EMU 2015”, Institutional Paper 14, Δεκέμβριος
- U. Michael Bergman, Michael M. Hutchison, Svend E. Hougaard Jensen, (2016), “Promoting sustainable public finances in the European Union: The role of fiscal rules and government efficiency”, European Journal of Political Economy, 3 Μαϊου