Rethinking fiscal policy: lessons from the European Monetary Union (EMU)

Fuente: Organización Internacional del Trabajo (OIT)
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Main Author: Francesco Saraceno
Format: Entrada de enciclopedia
Published: International Labour Organization 2017
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author Francesco Saraceno
author_facet Francesco Saraceno
Francesco Saraceno
contents Rethinking fiscal policy: lessons from the European Monetary Union (EMU) Francesco Saraceno This paper challenges the ideological and empirical basis of the “New Consensus” to macroeconomic policy, which advocates limited government intervention to correct short-term deviations from the growth path constrained by a rules-based framework. Based on the recent experience of the United States and the Economic and Monetary Union of the European Union (EMU), the paper argues that the New Consensus has yielded a policy stance that is excessively “hands off”, slow to respond to economic downturns, and has led to premature austerity, all of which have stifled the recovery. This provides lessons for not only developed countries, but also developing and emerging economies seeking to design macroeconomic policy frameworks to cope with the economic cycle and spillovers from the globalized economy. Employment working paper, no. 219, ILO publication.encyclopediaEntry
format Entrada de enciclopedia
id ilo_995219081502676
institution Organización Internacional del Trabajo (OIT)
publishDate 2017
publisher International Labour Organization
spellingShingle Rethinking fiscal policy: lessons from the European Monetary Union (EMU)
Francesco Saraceno
Rethinking fiscal policy: lessons from the European Monetary Union (EMU) Francesco Saraceno This paper challenges the ideological and empirical basis of the “New Consensus” to macroeconomic policy, which advocates limited government intervention to correct short-term deviations from the growth path constrained by a rules-based framework. Based on the recent experience of the United States and the Economic and Monetary Union of the European Union (EMU), the paper argues that the New Consensus has yielded a policy stance that is excessively “hands off”, slow to respond to economic downturns, and has led to premature austerity, all of which have stifled the recovery. This provides lessons for not only developed countries, but also developing and emerging economies seeking to design macroeconomic policy frameworks to cope with the economic cycle and spillovers from the globalized economy. Employment working paper, no. 219, ILO publication.encyclopediaEntry
title Rethinking fiscal policy: lessons from the European Monetary Union (EMU)
url https://researchrepository.ilo.org/esploro/outputs/encyclopediaEntry/Rethinking-fiscal-policy-lessons-from-the/995219081502676