Close-To-Balance Or in Surplus': A Policy-Maker's Guide to the Implementation of the Stability and Growth Pact
License
Access Rights
Cadmus Permanent Link
Full-text via DOI
ISBN
ISSN
0021-9886
Issue Date
Type of Publication
Keyword(s)
LC Subject Heading
Other Topic(s)
EUI Research Cluster(s)
Initial version
Published version
Succeeding version
Preceding version
Published version part
Earlier different version
Initial format
Author(s)
Citation
Journal of Common Market Studies, 2000, 38, 4, 563-592
Cite
ARTIS, Michael J., BUTI, Marco, Close-To-Balance Or in Surplus’: A Policy-Maker’s Guide to the Implementation of the Stability and Growth Pact, Journal of Common Market Studies, 2000, 38, 4, 563-592 - https://hdl.handle.net/1814/16744
Abstract
Under the Stability and Growth Pact, countries are committed to achieve medium-term budget positions of 'close-to-balance or in surplus'. The rationale for this commitment is that such budgetary positions would allow for the full working of the built-in stabilizers without triggering the sanctions procedures of the Pact. This article sets out to show how quantifications of the medium-term (structural) requirement can accommodate the desired aim and suggests how fiscal measurement and forecasting errors as well as the budgetary effects of ageing may be allowed for. All in all, broadly balanced budgets in the medium term appear to be 'roughly right' for most euro-zone countries. Of course, as the cyclical behaviour of the euro-zone economy adapts to the new EMU environment, the medium-term targets will need to be addressed again.
Table of Contents
Additional Information
External Links
Publisher
Geographical Coverage
Temporal Coverage
Version
The article is a published version of EUI RSC WP; 2000/28