International Fiscal Policy Coordination and Economic Growth

1992 ◽  
Vol 33 (2) ◽  
pp. 249 ◽  
Author(s):  
Michael B. Devereux ◽  
Arman Mansoorian
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Policy Coordination ◽  
Fiscal Policy Coordination

Beggar-Thy-Neighbors

2019 ◽  
pp. 69-89
Author(s):  
Charlotte Rommerskirchen
Keyword(s):  
Fiscal Policy ◽  
Qualitative Comparative Analysis ◽  
Free Riding ◽  
Policy Coordination ◽  
The Political ◽  
Political Clout ◽  
Large Member ◽  
Diverse Groups ◽  
Central Claim ◽  
Fiscal Policy Coordination

Diverse groups are a hotbed for free riders. This chapter thus tests whether fiscal policy coordination was marred by collective action failure. The central claim of this chapter is that accusations of stability or growth free riding are not borne out by factual evidence. Using regression analysis and Qualitative Comparative Analysis, the chapter shows that despite their greater ability to free ride (given their political clout and trade links), larger and more open economies implemented larger stimulus programs. Fiscal policy is further analyzed vis-à-vis a country’s fiscal space. Results show that, by and large, member states stimulated their economies in line with their fiscal room for maneuver. These findings are contrasted with the political discourse of the time, when indictments of growth free riding were widespread. Accusations of beggar-thy-neighbor politics were rife; first-order free riding was not.

Market Discipline

2019 ◽  
pp. 110-130
Author(s):  
Charlotte Rommerskirchen
Keyword(s):  
Fiscal Policy ◽  
Free Riding ◽  
Policy Coordination ◽  
Market Discipline ◽  
Second Order ◽  
Fiscal Rules ◽  
Member States ◽  
First Order ◽  
Fiscal Policy Coordination ◽  
The Eu

Free riding is endemic. But it is not the type of first-order free riding that politicians and EU officials publicly chastised. Instead, fiscal policy coordination is burdened by a serious internal enforcement problem; that is, second-order free riding. The argument presented here is different from the usual decrying of a lack of enforcement in fiscal policy coordination, which is said to invite member states to engage in rampant fiscal free riding. This chapter contests that without internal enforcement within the EU, fiscal policy coordination has come to rely on market discipline with dire consequences for its members. The chapter demonstrates that, in contrast to fiscal rules and intergovernmental agreements, the incentives provided by market discipline shape public finances.

Fiscal Policy Coordination

2019 ◽  
pp. 14-25
Author(s):  
Charlotte Rommerskirchen
Keyword(s):  
Fiscal Policy ◽  
Historical Context ◽  
Policy Coordination ◽  
Economic Recovery ◽  
Stability And Growth Pact ◽  
Growth Pact ◽  
Legal Power ◽  
The Stability ◽  
Key Aspects ◽  
Fiscal Policy Coordination

This chapter sets the scene for this study by providing historical context and introducing the key aspects, processes, and players of fiscal policy coordination. In so doing it charts key developments of pre-crisis fiscal policy coordination, before turning to the creation of the European crisis agreement, the European Economic Recovery Plan (EERP), and finally the reform packages post-crisis. Despite impressions to the contrary, the procedures for fiscal policy coordination are extensive, albeit enforced and reinforced with little political and legal power. Although there is persistent continuity for some ideas and procedures—the Stability and Growth Pact (SGP) and its fear of stability free riding chief among them—new innovations and reforms have made inroads.

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