1. The Stability and Growth pPact
... (to satisfy German concerns, for example), then surely the SGP should be only a transitional feature, and should be removed once monetary integration is achieved to allow automatic stabilizers to work. But the SGP raises further concerns. First, as the ECB clearly favors the SGP, there is the issue of whether some sort of pact could act as an effective coordination mechanism between fiscal and monetary ... policy in the eurozone (Buti, Roeger and in't Veld, 2001). Recent empirical research on the US suggests that indeed the Fed does respond to fiscal policy shocks ... measures as only a...
- Word Count: 1678
- Approx Pages: 7
- Grade Level: Graduate