Budget Processes and Commitment to Fiscal Discipline

Hagen, Jürgen von; Harden, Ian

doi:10.2139/ssrn.882975

Cited by 52 publications

(30 citation statements)

References 3 publications

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“…Externally imposed discipline is seen as an infringement of domestic sovereignty and of parliament's prerogative in voting budgets. A number of proposals have suggested that the pact should instead promote institutions, if possible national institutions, that deliver better policy outcomes (Von Hagen and Harden 1995;Wyplosz 2005).…”

Section: The Stability and Growth Pactmentioning

confidence: 99%

European Monetary Union

Wyplosz¹

2008

The New Palgrave Dictionary of Economics

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The European Monetary Union is an original, complex undertaking in the making. The single currency has so far operated smoothly, yet many of its details are controversial. Inflation has been low and the European Central Bank has achieved some credibility, though its strategy is often criticized. The euro has not displaced the dollar as the world currency, but has allowed for the emergence of Europe-wide bond market. The downside has been low growth in many countries, presumably a consequence of market rigidities. Similarly, the Stability and Growth Pact, designed to eliminate the budget deficit bias, has had a checkered history. Keywords Budget deficits; Deflation; Euro; European central bank; European monetary union; European overnight interest average; European union; Eurosystem; Excessive deficit procedure (EU); Exchange rate mechanism (EU); Externalities; Federal reserve system; Foreign exchange risk; Harmonized index of consumer prices (HICP); Inflation targeting; Maastricht treaty (EU); Optimum currency area; Price stability; Price transparency; Stability and growth pact; Sticky wages; Taylor rule; Time consistency of monetary and fiscal policy; Trade diversion JEL Classification F3In 2007, 13 independent countries shared the same currency, the euro. The adoption of the common currency is a major step in the deep integration process followed in Europe since the Second World War.

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Section: The Stability and Growth Pactmentioning

confidence: 99%

European Monetary Union

Wyplosz¹

2008

The New Palgrave Dictionary of Economics

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“…Empirical studies have frequently found fiscal rules to be associated with positive fiscal outcomes. Von Hagen and Harden (1995) have found tighter budget rules to be associated with lower deficits and borrowing in Member Countries of the Organization for Economic…”

Section: A Impact Of Fiscal Responsibility Legislations (Frls) On Fis...mentioning

confidence: 99%

Indian Subnational Finances: Recent Performance

Prasad

Kishore

2007

SSRN Journal

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“…Federal systems have more collective action problems than unitary systems. Electoral rules that give rise to many political parties, and hence to coalition governments, have more problems reigning in the common pool problems (von Hagen and Harden, 1995). Proportional representation generates greater party fragmentation than first-past-the-post electoral systems.…”

Section: A Institutional Challenges In Democratic Systemsmentioning

confidence: 99%

“…SeeInman (1990) orPoterba (1994) for the United states, vonHagen and Harden (1995) for the European Union,Alesina, Hausmann, Hommes and Stein (1996), IDB (1997),Stein, Talvi and Grisanti (1998), for Latin America, and for Argentina seeBraun and Tommasi (2004).…”

mentioning

confidence: 99%