Reconciling Stability and Growth : Smart Pacts and Structural Reforms /

This paper analyzes the decision of a government facing electoral uncertainty to implement structural reforms in the presence of fiscal restraints similar to the Stability and Growth Pact. The model shows that a pact may harm structural reforms, sacrificing future growth for present stability. The w...

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Chi tiết về thư mục
Tác giả chính: Beetsma, Roel
Tác giả khác: Debrun, Xavier
Định dạng: Tạp chí
Ngôn ngữ:English
Được phát hành: Washington, D.C. : International Monetary Fund, 2003.
Loạt:IMF Working Papers; Working Paper ; No. 2003/174
Truy cập trực tuyến:Full text available on IMF
Miêu tả
Tóm tắt:This paper analyzes the decision of a government facing electoral uncertainty to implement structural reforms in the presence of fiscal restraints similar to the Stability and Growth Pact. The model shows that a pact may harm structural reforms, sacrificing future growth for present stability. The welfare gains brought about by a pact depend on a trade-off between the reduction in the deficit bias and the induced reduction in the amount of structural reform. A pact becomes more attractive ('smarter') if it takes into account the fiscal impact of structural reforms, in line with a recent proposal by the European Commission.
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Mô tả vật lý:1 online resource (34 pages)
Định dạng:Mode of access: Internet
số ISSN:1018-5941
Truy cập:Electronic access restricted to authorized BRAC University faculty, staff and students