Golden Rule (fiscal policy)

About: Golden Rule (fiscal policy) is a research topic. Over the lifetime, 661 publications have been published within this topic receiving 9789 citations.

An assessment of stability and growth pact reform proposals in a small-scale macro framework

Abstract: This paper contributes to the debate on fiscal governance for the European Monetary Union, assessing the different fiscal rules currently discussed. We simulate a small scale macroeconomic model with forward looking agents, augmented with a public finances block. We account for both the positive (output stabilization) and negative (via risk premia) effects of debt and deficit. By the appropriate choice of the exogenous fiscal variables, in the fiscal block, we replicate the working of the rules embedded in the so-called "fiscal compact": a balanced budget rule (the "new golden rule"), and the debt reduction rule (to reach 60% of GDP in 20 years). We compare these rules with the Maastricht 3% deficit limit (status quo), and with an "investment" rule leaving room for public investment. We evaluate the performance in terms of output loss during a fiscal consolidation, as well as following demand and supply shocks in steady state. All rules guarantee long run sustainability. The investment rule emerges robustly as the one guaranteeing the lower output loss, followed by the status quo. The "fiscal compact" rules appear to be recessionary

On golden rules, balancing acts, & finding the right size

Abstract: tn The New Golden Rule, Amitai Etzioni sets out to recruit new members to his lcommunitarian public ethic. In particular, he wants to recruit those who emphasize the importance of autonomy by articulating a version of communitarianism in which one should practice a New Golden Rule: "respect and uphold society's moral order as you would have society respect and uphold your autonomy.''l In advocating a sort of virtuous democracy, he provides criteria to check the oppression that communities can perpetrate and to argue that more than freedom, particularly economic freedom, is necessary to prevent Darwinian social struggles. Many will fairly focus on two aspects of Etzioni's book. Some will dwell on the many virtues of his balancing strategy and others will critique his overdrawn characterizations of both autonomy and conservativism. Instead of following these paths, I would like explore how Etzioni's general points about balance and the New Golden Rule might apply to business ethics. Section II describes the implications of Etzioni's argument to business and business ethics and Section III analyzes Etzioni's use of the New Golden Rule itself.

Analysis of public debt in the European Union - issues related to its sustainability*

Abstract: Q e purpose of this paper is to analyze the public debt in the EU member coun- tries based on the "golden rule" of state indebtedness. Q is study analyzes the type of relationships that exist in the European Union (EU27) in the period 2008-2012, between the level of the public debt and: public investments, unemployment rate and economic growth in order to identify the destinations and e( ects of the public debt that represent pillars in the analysis of its sustainability. Q e analysis revealed an inverse relationship between public debt and public investments, thus increasing the public debt is not listed in stimulating public investments, but on the contrary it can be noticed their decline.