Bringing macroeconomics back into the political economy of reform: The Lisbon Agenda and the 'fiscal philosophy' of EMU
Mabbett, Deborah and Schelkle, W. (2007) Bringing macroeconomics back into the political economy of reform: The Lisbon Agenda and the 'fiscal philosophy' of EMU. JCMS: Journal of Common Market Studies 45 (1), pp. 81-103. ISSN 0021-9886.
The Lisbon Strategy supports reform of member states’ tax-benefit systems while the ‘fiscal philosophy’ of the EU postulates that governments should allow only automatic stabilisers, built into tax-benefit systems, to smooth aggregate income. We ask whether these two pillars of EU economic governance are compatible. By exploring how structural reforms affect fiscal stabilisation, we complement a political economy literature that asks whether fiscal consolidation fosters or hinders structural reforms. We conclude, based on simulations in EUROMOD, that Lisbon-type reforms may worsen the stabilising capacity of tax-benefit systems.
|Keyword(s) / Subject(s):||European monetary union, EMU, macroeconomic policy, structural adjustment, automatic stabilisers, political economy|
|School:||Birkbeck Schools and Departments > School of Social Sciences, History and Philosophy > Politics|
|Depositing User:||Deborah Mabbett|
|Date Deposited:||15 Nov 2005|
|Last Modified:||17 Apr 2013 12:32|
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