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.
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Abstract
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.
Metadata
| Item Type: | Article |
|---|---|
| Keyword(s) / Subject(s): | European monetary union, EMU, macroeconomic policy, structural adjustment, automatic stabilisers, political economy |
| School: | Birkbeck Faculties and Schools > Faculty of Humanities and Social Sciences > School of Social Sciences |
| Depositing User: | Deborah Mabbett |
| Date Deposited: | 15 Nov 2005 |
| Last Modified: | 02 Aug 2023 16:46 |
| URI: | https://eprints.bbk.ac.uk/id/eprint/259 |
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