Numerical Fiscal Rules for Economic Unions : The Role of Sovereign Spreads

We study gains from introducing a common numerical fiscal rule in a “Union” of model economies facing sovereign default risk. We show that among economies in the Union, there is significant disagreement about the common debt limit the Union should implement: the limit preferred by some economies can generate welfare losses in other economies. In contrast, a common sovereign spread limit results in higher welfare across economies in the Union

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Year of publication:	[2022]
Authors:	Hatchondo, Juan ; Martinez, Leonardo ; Roch, Francisco
Publisher:	[S.l.] : SSRN
Subject:	EU-Staaten \| EU countries \| Finanzpolitik \| Fiscal policy \| Wirtschaftsintegration \| Economic integration \| Öffentliche Anleihe \| Public bond

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Extent:	1 Online-Ressource (16 p)
Series:	IMF Working Paper ; No. 2021/196
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments July 1, 2021 erstellt
Other identifiers:	10.2139/ssrn.4026395 [DOI]
Classification:	F34 - International Lending and Debt Problems ; F41 - Open Economy Macroeconomics ; E62 - Fiscal Policy; Public Expenditures, Investment, and Finance; Taxation ; H63 - Debt; Debt Management ; E31 - Price Level; Inflation; Deflation
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013306767