Debt sustainability and economic convergence of euro-area Member States: Challenges and Solutions

Manasse, Paolo (2015) Debt sustainability and economic convergence of euro-area Member States: Challenges and Solutions. Bologna: Dipartimento di Scienze economiche DSE, p. 23. DOI 10.6092/unibo/amsacta/4399. In: Quaderni - Working Paper DSE (1035). ISSN 2282-6483.
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Abstract

This paper argues that fiscal convergence in the Euro area has been achieved at the expenses of real divergence in unemployment, investment and at, at least temporarily, growth. Statistical and econometric analysis support the view that the current fiscal framework has addressed debt sustainability concerns, but has imparted a pro-cyclical bias, which has contributed to economic divergence. The recent flexibility guidelines are a step in the right direction, but they are unlikely to have sizable effects. A reform of the fiscal framework and a mechanism for an intra-European unemployment insurance scheme is proposed.

Abstract
Document type
Monograph (Working Paper)
Creators
CreatorsAffiliationORCID
Manasse, Paolo
Keywords
fiscal convergence, growth and stability pact, debt sustainability, procyclical fiscal policy
Subjects
ISSN
2282-6483
DOI
Deposit date
23 Oct 2015 10:56
Last modified
07 Jun 2017 08:00
URI

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