1. The Stability and Growth pPact
... providing some elementary coordination of fiscal policy (Artis and Winkler, 1997). The recent problems with the SGP can be easily explained by elementary public debt dynamics. As the key indicator in the SGP is the budget deficit to GDP ratio, clearly a reduction in this ratio is achieved if either GDP increases, or if the budget deficit decreasesreduces. But one particular feature of ... no penalties for limited divergence from this given individual member state economic conditions. If the SGP were intended to protect the ECB from fiscal profligacy in a single member state or collectio...
- Word Count: 1678
- Approx Pages: 7
- Grade Level: Graduate