Reconciling Insurance with Market Discipline: A Blueprint for a European Fiscal Union

Dolls, Mathias; Fuest, Clemens; Heinemann, Friedrich; Peichl, Andreas

doi:10.2139/ssrn.2752376

Cited by 2 publications

(1 citation statement)

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“…Moreover, the OMT programme included compliance with an EFSF/ESM programme as a precondition for support. Moreover, fiscal rules were tightened (Dolls et al ., 2016). In particular, the surveillance of the Stability and Growth Pact (SGP) was strengthened by two comprehensive legislative measures, namely the ‘two pack’ and the ‘six pack’, which also included tighter enforcement rules.However, the SGP was still violated afterwards.…”

Section: Resultsmentioning

confidence: 99%

Euro Area Periphery Countries' Fiscal Policy and Monetary Policy Surprises*

Hülsewig

Rottmann

2022

Oxf Bull Econ Stat

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We estimate local projections to explore how fiscal policy in euro area periphery countries responds to monetary policy shocks that lower sovereign bond yields. In particular, we assess whether the disciplining effect of financial markets on public finances is undermined by the ability of monetary policy to affect the conditions of external funds. We find that the fiscal balance, on average, improves in response to monetary policy surprises that bring down yields on sovereign bonds.JEL Classification numbers: E52, E62, H62. *We are grateful to Francesco Zanetti, two anonymous referees, Peter Egger, Benjamin Born, Gerhard Illing, Stefan Pichler and Peter Zorn for valuable comments and helpful suggestions. We also thank the participants of the KOF research seminar and the LMU macroeconomic research seminar for fruitful discussions. The usual disclaimer applies.

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Section: Resultsmentioning

confidence: 99%

Euro Area Periphery Countries' Fiscal Policy and Monetary Policy Surprises*

Hülsewig

Rottmann

2022

Oxf Bull Econ Stat

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The Religious Foundations of the European Crisis

Hien

2017

J of Common Market Studies

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There has been much talk about ordoliberalism recently. Scholars and the press identify it as the dominant economic instruction sheet for Germany's European crisis politics. However, by analyzing ordoliberalism only as an economic theory, the debate downplays that ordoliberalism is also an ethical theory, with strong roots in Protestant social thought. It is this rooting in Protestant social thought that makes Ordoliberalism incompatible with the socioeconomic ethics of most of the European crisis countries, whose ethics originate in Catholic and Orthodox social thought. This divergence is the source of a crisis of understanding between European nations and hinders a collective response to the Euro crisis.

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Reconciling Insurance with Market Discipline: A Blueprint for a European Fiscal Union

Cited by 2 publications

References 18 publications

Euro Area Periphery Countries' Fiscal Policy and Monetary Policy Surprises*

Euro Area Periphery Countries' Fiscal Policy and Monetary Policy Surprises*

The Religious Foundations of the European Crisis

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