Corvinus
Corvinus

New life for an old framework: redesigning the European Union's expenditure and golden fiscal rules

Darvas, Zsolt and Anderson, Julia (2020) New life for an old framework: redesigning the European Union's expenditure and golden fiscal rules. Working Paper. Corvinus University of Budapest, Budapest.

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Abstract

In the context of the review of the EU economic governance framework, this study recommends a multi-year ahead expenditure rule anchored in an appropriate public debt target, augmented with an asymmetric golden rule that provides extra fiscal space only in times of a recession. An improved governance framework should strengthen national fiscal councils and include a European fiscal council, while financial sanctions should be replaced with instruments related to surveillance, positive incentives, market discipline and increased political cost of noncompliance.

Item Type:Monograph (Working Paper)
Series Name:Corvinus Economics Working Papers - CEWP
Series Number / Identification Number:2020/05
Uncontrolled Keywords:expenditure rule, golden rule, structural budget balance
JEL classification:E62 - Fiscal Policy
H20 - Taxation, Subsidies, and Revenue: General
Subjects:International economics
Finance
ID Code:5976
Deposited By: Veronika Vitéz
Deposited On:20 Oct 2020 17:23
Last Modified:04 Jan 2021 14:28

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