Hostname: page-component-cd9895bd7-gbm5v Total loading time: 0 Render date: 2024-12-22T17:18:04.810Z Has data issue: false hasContentIssue false
  • English
  • Français

Monetary and Fiscal Policy in Europe: an Overview

Published online by Cambridge University Press:  26 March 2020

Ray Barrell  and
Nigel Pain
Nigel Pain
Affiliation:
National Institute of Economic and Social Research
Get access Rights & Permissions [Opens in a new window]

Abstract

There are new monetary and fiscal frameworks in place for the countries in the Euro Area. The European Central Bank has a remit to maintain price level stability in the medium term, and it has developed a two pillar strategy, with interest rates being set in relation to a reference value of M3 and general (inflationary) conditions. We discuss an ideal type representation of this framework and examine the potential effects of a fall in the euro. Fiscal policy in Europe is now based on guidelines from the Stability and Growth Pact and we discuss the role of commitment in this framework as well

Type
Research Article
Information
National Institute Economic Review , Volume 174 , October 2000 , pp. 63 - 67
Copyright
Copyright © 2000 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Footnotes

We would like to thank our colleagues Ian Hurst, Karen Dury, Paul Ashworth, Joe Byrne, Florence Hubert and Dawn Holland for their contributions. This work was supported under ESRC Project 1138250122 ‘Fluctuations and Long-Term Prosperity: a study of the UK and International Economies’.

References

Barrell, R. (2000), ‘Strong growth and robust budgets in Europe: emerging trend or developing cycle?’ in Budget Perspectives, Dublin, ESRI.Google Scholar
Barrell, R., Byrne, J., Dury, K., Holland, D. and Hurst, A.I., (2000), ‘Reforming European monetary and fiscal policy in the 1980s and 1990s’, NIESR at www.niesr.ac.uk.Google Scholar
Barrell, R. and Dury, K. (2000), ‘Choosing the regime: macroeconomic effects of UK entry into EMU’, Journal of Common Market Studies, 30 (4).Google Scholar
-(2000a), ‘The Stability and Growth Pact, will it ever be breached? An analysis using stochastic simulations’, in Brunila, A.mButi, M. and Franco, D. (eds), The Stability and Growth Pact: The Architecture of Fiscal Policy in EMU.Google Scholar
Barrell, R., Dury, K. and Hurst, I. (1999a), ‘An encompassing framework for evaluating simple monetary policy rules’, National Institute Discussion Paper No. 156.Google Scholar
Barrell, R. and Pain, N. (2001), ‘Macroeconomic management in the EU’, in Brewer, T. and Boyd, G. (eds), Globalizing Europe, Macmillan Press, forthcoming.Google Scholar
European Central Bank (1998), ‘A stability oriented monetary policy for the ESCB’, Statement by W. Duisenberg, Frankfurt, European Central Bank.Google Scholar
-(1999), ‘The stability oriented monetary strategy of the Eurosystem’, European Central Bank Monthly Bulletin, January.Google Scholar
-(2000), ‘Monetary policy decisions in the context of the Eurosystem's strategy’, European Central Bank Annual Report for 1999.Google Scholar
-(2000a), ‘ECB Press Conference’ 5th October 2000, available at http://www.ecb.int/key/00/sp001005.htm.Google Scholar
Niehans, J. (1980), The Theory of Money, Princeton University Press. Soskice, D. (1990), ‘Wage determination: the changing role of institutions in advanced industrialised countries’, Oxford Review of Economic Policy, 6, 4.Google Scholar