The SGP - faulty by design or made faulty by politicians? An assessment based on simulation model.
The result's identifiers
Result code in IS VaVaI
<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216224%3A14560%2F13%3A00069663" target="_blank" >RIV/00216224:14560/13:00069663 - isvavai.cz</a>
Result on the web
<a href="https://mme2013.vspj.cz/about-conference/conference-proceedings" target="_blank" >https://mme2013.vspj.cz/about-conference/conference-proceedings</a>
DOI - Digital Object Identifier
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Alternative languages
Result language
angličtina
Original language name
The SGP - faulty by design or made faulty by politicians? An assessment based on simulation model.
Original language description
By joining the European Monetary Union (the ?EMU?) member countries lost the ability to use the monetary policy as a tool of macroeconomic regulation. The attention was than focused on the regulation of the fiscal policy and the agreed instrument was theStability and Growth Pact (the "SGP"). States of the EMU have agreed to satisfy the 3% of GDP for the maximum annual public budgets deficit. Based on the evolution of the public debt in member countries we can say that the SGP has failed as a tool of fiscal discipline. In this paper we answer the question whether the failure was given due to incorrect concept of the SGP or whether the development of the debt was affected more by arbitrary disrespect of agreed rules. The two reasons mentioned above areinterdependent. To separate them, we construct a dynamic model of EU countries public debt. By using real data we simulate the potential values of public debt in a situation where the SGP rules had been respected in recent years.
Czech name
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Czech description
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Classification
Type
D - Article in proceedings
CEP classification
AH - Economics
OECD FORD branch
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Result continuities
Project
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Continuities
S - Specificky vyzkum na vysokych skolach
Others
Publication year
2013
Confidentiality
S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů
Data specific for result type
Article name in the collection
Proceedings of the 31st International Conference Mathematical Methods in Economics 2013
ISBN
9788087035764
ISSN
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e-ISSN
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Number of pages
6
Pages from-to
279-284
Publisher name
College of Polytechnics Jihlava
Place of publication
Jihlava
Event location
Jihlava
Event date
Jan 1, 2013
Type of event by nationality
EUR - Evropská akce
UT code for WoS article
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