1. The Stability and Growth pPact
... deficit carried over into the SGP despite the fact that the rationale for the SGP was to safeguard EMU, by 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 ... particular feature of the criteria used in the SGP was the cyclical nature of the budget deficits - in booms they automatically fall, and in recessions, they automatically rise ( - these components are called "automatic stabiliz...
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- Approx Pages: 7
- Grade Level: Graduate