Fiscal Politics in the Euro Area

Author/Editor:

Luc Eyraud ; Vitor Gaspar ; Tigran Poghosyan

Publication Date:

January 30, 2017

Electronic Access:

Free Full Text (PDF file size is 1208 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper provides evidence of fiscal procyclicality, excessive deficits, distorted budget composition and poor compliance with fiscal rules in the euro area. Our analysis relies on real-time data for 19 countries participating in the euro area over 1999–2015. We look for, but do not find, conclusive evidence of bias in procedures in relation to country size. The paper also briefly reviews the literature on political economy factors and policy biases, and offers some reflections on the euro area architecture.

Series:

Working Paper No. 17/18

Subject:

English

Publication Date:

January 30, 2017

ISBN/ISSN:

9781475572919/1018-5941

Stock No:

WPIEA2017018

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

44

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