Resource title

Improving the SGP : taxes and delegation rather than fines

Resource image

image for OpenScout resource :: Improving the SGP : taxes and delegation rather than fines

Resource description

We analyze motivations for, and possible alternatives to, the Stability and Growth Pact (SGP). With regard to the former, we identify domestic policy failures and various cross-country spillover effects; with regard to the latter, we contrast an ?economic-theory" perspective on optimal corrective measures with the ?legalistic" perspective adopted in the SGP. We discuss the advantages of replacing the Pact's rigid rules backed by fines with corrective taxes (as far as spillover effects are concerned) and procedural rules and limited delegation of fiscal powers (as far as domestic policy failures are concerned). This would not only enhance the efficiency of the Pact, but also render it easier to enforce.

Resource author

Assar Lindbeck, Dirk Niepelt

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/18753

Resource license

Adapt according to the presented license agreement and reference the original author.