University of Leicester
Browse
- No file added yet -

EMU and Politically-Induced Output Variability: Can the Stability and Growth Pack Help?

Download (85.7 kB)
report
posted on 2009-03-16, 14:40 authored by Robert Ackrill, Dean Garratt
Rogoff, 1985, suggested that central bank independence would lead to lower inflation but greater output variability. Alesina and Gatti, 1995, demonstrated Rogoff’s work was partial by only considering economic sources of output variability. By including political factors, circumstances could be identified when making a central bank independent could reduce both inflation and output variability. In EMU, however, there is no choice about central bank independence. Starting with a review of the analysis presented by Alesina and Gatti, this paper suggests national fiscal policies could also be a source of politically-induced output variability. It reinterprets the analysis of Alesina and Gatti and identifies circumstances when the Stability and Growth Pact could help to reduce output variability in EMU.

History

Publisher

Dept. of Economics, University of Leicester.

Available date

2009-03-16

Publisher version

http://www.le.ac.uk/economics/research/discussion/papers1998.html

Book series

Papers in Economics;98/2

Language

en

Usage metrics

    University of Leicester Publications

    Categories

    No categories selected

    Keywords

    Exports

    RefWorks
    BibTeX
    Ref. manager
    Endnote
    DataCite
    NLM
    DC