Ten Commandments for a Fiscal Rule in the E(M)U

C-Tier
Journal: Oxford Review of Economic Policy
Year: 2003
Volume: 19
Issue: 1
Pages: 84-99

Score contribution per author:

1.005 = (α=2.01 / 1 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Fiscal rules in a monetary union should (1) be simple; (2) ensure the solvency of the state; (3) relate to the consolidated general government and central bank; (4) be neutral as regards the size of the public sector; (5) avoid pro-cyclical behaviour of the fiscal policy instruments; (6) also make sense in the long run; (7) allow for important differences in economic structure and initial conditions; (8) aggregate into behaviour that makes sense at the level of the union as a whole; (9) be credible; and (10) be enforced impartially and consistently. The paper reviews the rules of the Stability and Growth Pact, the UK's golden rule and sustainable-investment rule, and Buiter and Grafe's permanent-balance rule from the perspective of how well they meet these ten criteria. Copyright 2003, Oxford University Press.

Technical Details

RePEc Handle
repec:oup:oxford:v:19:y:2003:i:1:p:84-99
Journal Field
General
Author Count
1
Added to Database
2026-01-25