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ADEMU/PWC Seminar: The Euro Area Fiscal Stance and The Policy Mix: Challenges and Trade-Offs

Dates:
  • Thu 02 Mar 2017 12.30 - 13.30
  Add to Calendar 2017-03-02 12:30 2017-03-02 13:30 Europe/Paris ADEMU/PWC Seminar: The Euro Area Fiscal Stance and The Policy Mix: Challenges and Trade-Offs

The recovery of the euro area has been particularly slow both by historical and international standards. Nine years after the economic and financial crisis struck, economic activity in the euro area is expanding at a moderate rate. However, the persistence of crisis legacies - such as the still-high unemployment rate and weak investment - suggest the recovery is not complete. So far policy actions to support growth have excessively relied on monetary policy, resulting in an unbalanced policy mix. If monetary policy alone cannot lead to balanced growth, is there a case for an expansionary fiscal stance at the aggregate euro area level? Can this be reconciled with the Stability and Growth Pact? The presentation explores the concept of fiscal space and the effectiveness of fiscal expansion in surplus countries for the euro area's internal and external adjustment. Finally, it discusses the build-up over the medium term of a fiscal stabilisation function at the central level.

Conference Room, Villa la Fonte DD/MM/YYYY
  Conference Room, Villa la Fonte

The recovery of the euro area has been particularly slow both by historical and international standards. Nine years after the economic and financial crisis struck, economic activity in the euro area is expanding at a moderate rate. However, the persistence of crisis legacies - such as the still-high unemployment rate and weak investment - suggest the recovery is not complete. So far policy actions to support growth have excessively relied on monetary policy, resulting in an unbalanced policy mix. If monetary policy alone cannot lead to balanced growth, is there a case for an expansionary fiscal stance at the aggregate euro area level? Can this be reconciled with the Stability and Growth Pact? The presentation explores the concept of fiscal space and the effectiveness of fiscal expansion in surplus countries for the euro area's internal and external adjustment. Finally, it discusses the build-up over the medium term of a fiscal stabilisation function at the central level.


Location:
Conference Room, Villa la Fonte

Affiliation:
Department of Economics
Robert Schuman Centre for Advanced Studies

Type:
Seminar

Contact:
Julia Valerio - Send a mail

Speaker:
Prof. Marco Buti (European Commission)
 
 

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