nep-pke New Economics Papers
on Post Keynesian Economics
Issue of 2005‒03‒20
two papers chosen by
Karl Petrick
Leeds Metropolitan University

  1. Should the Government be in the Banking Business? The Role of State-Owned and Development Banks By Ugo Panizza; Eduardo Levy-Yeyati; Alejandro Micco
  2. The Stability and Growth Pact from the Perspective Of the New Member States By Gábor Orbán; György Szapáry

  1. By: Ugo Panizza (Research Department, Inter-American Development Bank); Eduardo Levy-Yeyati (Universidad Torcuato Di Tella); Alejandro Micco (Research Department, Inter-American Development Bank)
    Abstract: Missing abstract.
    Date: 2004–03
  2. By: Gábor Orbán; György Szapáry
    Abstract: The purpose of this paper is to examine the fiscal characteristics of the new members in the light of the requirements of the SGP and the criticisms levelled against the Pact and to see in what ways their initial conditions differ from those faced by the current euro zone countries in the run-up to the adoption of the euro. Overall, because of the lower debt levels and greater yield convergence already achieved, the new members will be able to rely less on gains from yield convergence than the current euro zone members were able to do. EU accession will also have a negative net impact on the budgets of the new members in the early years of membership. We also look at the cyclical sensitivities of the budgets and find that in the new members the smoothing capacity of the automatic stabilizers might be weaker than in the current euro zone members. Beyond these general characteristics, we also emphasize that there are large differences in the starting fiscal positions of the new members. Some of the policy implications of our findings are discussed.
    Keywords: EU enlargement, fiscal policy, fiscal rules, Stability and Growth Pact
    JEL: E61 H6 H87
    Date: 2004–07–01

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