TRADABLE DEFICIT PERMITS. Efficient Implementation of the Stability Pact in the European Monetary Union

Abstract

The current provisions of the Pact for Stability and Growth advocate balanced budgets in the longer term and specify a ceiling for deficit spending of 3% of GDP for each member of the European Monetary Union. A violation of the ceiling will trigger warnings and eventually penalties (unless exceptional circumstances can be invoked).' In this form, the pact… (More)

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Cite this paper

@inproceedings{Casella1999TRADABLEDP, title={TRADABLE DEFICIT PERMITS. Efficient Implementation of the Stability Pact in the European Monetary Union}, author={Alessandra Casella and Kai A. Konrad and Charles Wyplosz and Michael Bolle and Prajit Dutta and Alan Kirman and Jacques Le Cacheux and Alex Pfaff}, year={1999} }