Nicole Bolleyer
- Published in print:
- 2009
- Published Online:
- September 2009
- ISBN:
- 9780199570607
- eISBN:
- 9780191721953
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199570607.003.0008
- Subject:
- Political Science, Comparative Politics, European Union
This concluding chapter elaborates on the theoretical implications of the study for institutional theory as well as on its practical implications for the likelihood of successful federal reform. In a ...
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This concluding chapter elaborates on the theoretical implications of the study for institutional theory as well as on its practical implications for the likelihood of successful federal reform. In a final step, it applies the theoretical arguments of the book to the European Union and explores whether the mechanisms through which policies are coordinated within this supranational setting can be accounted for by the proposed 'federalism framework'. Being composed of power-concentrating governments and governments with voluntary power-sharing on the level of the member states and characterized by compulsory power-sharing on the European level, the European Union mixes incentive structure within and across governmental levels. Contrasted with the three federal systems, the framework's application reveals parallels and peculiarities of the European polity in how the governments embedded in it handle demands for intergovernmental cooperation. While only a rough sketch, it indicates the fruitfulness of applying federalism frameworks beyond the national sphere and highlights the importance of avoiding the perception of the European Union as 'sui generic' from the outset.Less
This concluding chapter elaborates on the theoretical implications of the study for institutional theory as well as on its practical implications for the likelihood of successful federal reform. In a final step, it applies the theoretical arguments of the book to the European Union and explores whether the mechanisms through which policies are coordinated within this supranational setting can be accounted for by the proposed 'federalism framework'. Being composed of power-concentrating governments and governments with voluntary power-sharing on the level of the member states and characterized by compulsory power-sharing on the European level, the European Union mixes incentive structure within and across governmental levels. Contrasted with the three federal systems, the framework's application reveals parallels and peculiarities of the European polity in how the governments embedded in it handle demands for intergovernmental cooperation. While only a rough sketch, it indicates the fruitfulness of applying federalism frameworks beyond the national sphere and highlights the importance of avoiding the perception of the European Union as 'sui generic' from the outset.
Kaare Strøm, Wolfgang C. Müller, and Torbjörn Bergman
- Published in print:
- 2003
- Published Online:
- January 2005
- ISBN:
- 9780198297840
- eISBN:
- 9780191602016
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019829784X.003.0023
- Subject:
- Political Science, Comparative Politics
In this chapter, we take a closer look at democratic accountability outcomes. The evidence strongly and broadly suggests that cohesive and competitive political parties and governments help reduce ...
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In this chapter, we take a closer look at democratic accountability outcomes. The evidence strongly and broadly suggests that cohesive and competitive political parties and governments help reduce the risks of democratic delegation. Specifically, executive cohesion strongly and significantly reduces the risks of corruption and fiscal indiscipline. Party competition, on the other hand, reduces rent extraction and promotes general satisfaction with democracy. The rest of the chapter reviews the broader lessons of this study, with respect to parliamentary democracy, parliamentary governance, political institutions, and the gap between citizens and their political representatives.Less
In this chapter, we take a closer look at democratic accountability outcomes. The evidence strongly and broadly suggests that cohesive and competitive political parties and governments help reduce the risks of democratic delegation. Specifically, executive cohesion strongly and significantly reduces the risks of corruption and fiscal indiscipline. Party competition, on the other hand, reduces rent extraction and promotes general satisfaction with democracy. The rest of the chapter reviews the broader lessons of this study, with respect to parliamentary democracy, parliamentary governance, political institutions, and the gap between citizens and their political representatives.
Kenneth Dyson and Kevin Featherstone
- Published in print:
- 1999
- Published Online:
- November 2003
- ISBN:
- 9780198296386
- eISBN:
- 9780191599125
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019829638X.003.0012
- Subject:
- Political Science, European Union
Domestically, elites and the mass public were so united in giving high priority to maintaining Italy's position in ‘Europe’ that its substance elicited little public debate. Yet, the demands of the ...
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Domestically, elites and the mass public were so united in giving high priority to maintaining Italy's position in ‘Europe’ that its substance elicited little public debate. Yet, the demands of the EMU negotiations challenged the traditional diffuseness of state administration and the mores of the partitocrazia. Thus, a window of opportunity appeared for technocratic policy leadership over the EMU negotiations. A small nucleus of officials within the core executive acted in relative isolation as policy entrepreneurs. Especially at the start, the policy style was essentially reactive but it came to display clarity, coherence, and consistency in the positions adopted. Paradoxically, a ‘weak’ state displayed strong policy coordination.Less
Domestically, elites and the mass public were so united in giving high priority to maintaining Italy's position in ‘Europe’ that its substance elicited little public debate. Yet, the demands of the EMU negotiations challenged the traditional diffuseness of state administration and the mores of the partitocrazia. Thus, a window of opportunity appeared for technocratic policy leadership over the EMU negotiations. A small nucleus of officials within the core executive acted in relative isolation as policy entrepreneurs. Especially at the start, the policy style was essentially reactive but it came to display clarity, coherence, and consistency in the positions adopted. Paradoxically, a ‘weak’ state displayed strong policy coordination.
Arthur C. Helton
- Published in print:
- 2002
- Published Online:
- November 2003
- ISBN:
- 9780199250318
- eISBN:
- 9780191599477
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0199250316.003.0009
- Subject:
- Political Science, International Relations and Politics
As evidenced in US government responses to humanitarian emergencies over the past decade, humanitarian considerations are often not taken into account sufficiently in military and political planning ...
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As evidenced in US government responses to humanitarian emergencies over the past decade, humanitarian considerations are often not taken into account sufficiently in military and political planning processes. Kosovo was a prime example. The status quo is not an optimal basis for promoting US humanitarian interests. Bureaucratic turf wars and a long‐standing debate between the developed and developing countries on questions of intervention and national sovereignty have politicized and slowed effective humanitarian action, causing donor countries to turn away from formal multi‐lateral structures. To more effectively discharge US government functions in the humanitarian field and to more effectively coordinate policy, a new separate civilian agency —an Agency for Humanitarian Action (AHA)—is proposed.Less
As evidenced in US government responses to humanitarian emergencies over the past decade, humanitarian considerations are often not taken into account sufficiently in military and political planning processes. Kosovo was a prime example. The status quo is not an optimal basis for promoting US humanitarian interests. Bureaucratic turf wars and a long‐standing debate between the developed and developing countries on questions of intervention and national sovereignty have politicized and slowed effective humanitarian action, causing donor countries to turn away from formal multi‐lateral structures. To more effectively discharge US government functions in the humanitarian field and to more effectively coordinate policy, a new separate civilian agency —an Agency for Humanitarian Action (AHA)—is proposed.
Kenneth A. Armstrong
- Published in print:
- 2010
- Published Online:
- January 2011
- ISBN:
- 9780199278374
- eISBN:
- 9780191594861
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199278374.001.0001
- Subject:
- Law, EU Law
Strategies and policies to combat poverty and social exclusion have traditionally been developed within the boundaries of nation states. For European Union Member States, these strategies and ...
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Strategies and policies to combat poverty and social exclusion have traditionally been developed within the boundaries of nation states. For European Union Member States, these strategies and policies have been subject to the increasing influence of EU governance. Since 2000, policy coordination through the Open Method of Coordination (OMC) has served as the key vehicle for the Europeanization of domestic strategies and policies. This book explores the possibilities of, and limits to, the Europeanization of domestic social policy. Notwithstanding substantial changes at the constitutional, governance, and policy levels through the Lisbon Treaty and a decade of the Lisbon Strategy, the identity and purposes of institutionalizing EU social policy interventions remains unsettled. At the same time, domestic polities, politics, and policies act as institutional mediators of EU pressures to modernize and reform domestic social policies. After a decade of EU intervention, the percentage of households at risk of income poverty has barely changed. Yet, economic and political retrenchment in the wake of a global recession makes the need to strengthen governance tools and to enhance coordination both more urgent and more difficult.Less
Strategies and policies to combat poverty and social exclusion have traditionally been developed within the boundaries of nation states. For European Union Member States, these strategies and policies have been subject to the increasing influence of EU governance. Since 2000, policy coordination through the Open Method of Coordination (OMC) has served as the key vehicle for the Europeanization of domestic strategies and policies. This book explores the possibilities of, and limits to, the Europeanization of domestic social policy. Notwithstanding substantial changes at the constitutional, governance, and policy levels through the Lisbon Treaty and a decade of the Lisbon Strategy, the identity and purposes of institutionalizing EU social policy interventions remains unsettled. At the same time, domestic polities, politics, and policies act as institutional mediators of EU pressures to modernize and reform domestic social policies. After a decade of EU intervention, the percentage of households at risk of income poverty has barely changed. Yet, economic and political retrenchment in the wake of a global recession makes the need to strengthen governance tools and to enhance coordination both more urgent and more difficult.
José María Fanelli
- Published in print:
- 2003
- Published Online:
- November 2003
- ISBN:
- 9780195155358
- eISBN:
- 9780199832989
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/0195155351.003.0024
- Subject:
- Economics and Finance, International
This chapter examines the pros and cons of macroeconomic policy coordination in Mercosur. It reviews the macroeconomic functioning of the Argentine economy under convertibility, and the exchange ...
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This chapter examines the pros and cons of macroeconomic policy coordination in Mercosur. It reviews the macroeconomic functioning of the Argentine economy under convertibility, and the exchange regimes and trade structure of Mercosur countries. It argues that Mercosur countries would greatly benefit from gradually advancing into macro coordination. The first step is to reduce the remaining volatility in the evolution of nominal and relative prices within the bloc.Less
This chapter examines the pros and cons of macroeconomic policy coordination in Mercosur. It reviews the macroeconomic functioning of the Argentine economy under convertibility, and the exchange regimes and trade structure of Mercosur countries. It argues that Mercosur countries would greatly benefit from gradually advancing into macro coordination. The first step is to reduce the remaining volatility in the evolution of nominal and relative prices within the bloc.
Uwe Puetter
- Published in print:
- 2006
- Published Online:
- July 2012
- ISBN:
- 9780719074035
- eISBN:
- 9781781701553
- Item type:
- book
- Publisher:
- Manchester University Press
- DOI:
- 10.7228/manchester/9780719074035.001.0001
- Subject:
- Political Science, European Union
This book a study on the work of the Eurogroup—monthly informal meetings between euro area finance ministers, the Commission and the European Central Bank. It demonstrates how this small, secretive ...
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This book a study on the work of the Eurogroup—monthly informal meetings between euro area finance ministers, the Commission and the European Central Bank. It demonstrates how this small, secretive circle of senior decision-makers shapes European economic governance through a routinised informal policy dialogue. Although the role of the Eurogroup has been contested since before the group's creation, its actual operation has never been subject to systematic evaluation. This book opens the doors of the meeting room and shows how an understanding of the interplay of formal provisions and informal processes is pivotal to the analysis of euro area governance. The book advances the conceptual understanding of informal negotiations among senior European and national decision-makers, and provides an in-depth analysis of historical episodes of policy coordination. As other areas of European decision-making rely increasingly on informal, voluntary policy coordination amongst member states, the Eurogroup model can be seen as a template for other policy areas.Less
This book a study on the work of the Eurogroup—monthly informal meetings between euro area finance ministers, the Commission and the European Central Bank. It demonstrates how this small, secretive circle of senior decision-makers shapes European economic governance through a routinised informal policy dialogue. Although the role of the Eurogroup has been contested since before the group's creation, its actual operation has never been subject to systematic evaluation. This book opens the doors of the meeting room and shows how an understanding of the interplay of formal provisions and informal processes is pivotal to the analysis of euro area governance. The book advances the conceptual understanding of informal negotiations among senior European and national decision-makers, and provides an in-depth analysis of historical episodes of policy coordination. As other areas of European decision-making rely increasingly on informal, voluntary policy coordination amongst member states, the Eurogroup model can be seen as a template for other policy areas.
Agnar Sandmo
- Published in print:
- 2000
- Published Online:
- November 2003
- ISBN:
- 9780198297987
- eISBN:
- 9780191596858
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/019829798X.003.0007
- Subject:
- Economics and Finance, Development, Growth, and Environmental
Many types of environmental pollution are international or global; thus, the polluting country may not bear all the costs of pollution, nor may it reap all the benefits from its reduction. This ...
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Many types of environmental pollution are international or global; thus, the polluting country may not bear all the costs of pollution, nor may it reap all the benefits from its reduction. This chapter discusses the extent of this problem and the costs and benefits of international policy coordination. It also considers the application of the policy conclusions to the poor countries of the world, where the nature of environmental problems may be different and the range of policy instruments narrower. Finally, it looks at the political economy aspects of environmental policy: what incentives do politicians have to adopt the types of policy recommended by economic analysis?Less
Many types of environmental pollution are international or global; thus, the polluting country may not bear all the costs of pollution, nor may it reap all the benefits from its reduction. This chapter discusses the extent of this problem and the costs and benefits of international policy coordination. It also considers the application of the policy conclusions to the poor countries of the world, where the nature of environmental problems may be different and the range of policy instruments narrower. Finally, it looks at the political economy aspects of environmental policy: what incentives do politicians have to adopt the types of policy recommended by economic analysis?
Nicole Bolleyer
- Published in print:
- 2013
- Published Online:
- May 2013
- ISBN:
- 9780199652990
- eISBN:
- 9780191747915
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780199652990.003.0015
- Subject:
- Political Science, Comparative Politics
This chapter argues that patterns of horizontal self-coordination across lower-level governments in federal systems are driven by willingness as much as capacity. Depending on the internal dynamics ...
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This chapter argues that patterns of horizontal self-coordination across lower-level governments in federal systems are driven by willingness as much as capacity. Depending on the internal dynamics of lower-level governments (which drive their ‘outside relations’), strategic considerations systematically feed into collective attempts to solve shared policy problems that cross jurisdictional boundaries. The mismatch between the willingness and the capacity of governments to engage in collective problem-solving (i.e. the tension between political manoeuvring and functional needs) generates a range of paradoxes inherent in intergovernmental self-coordination. Just to mention one: Since intergovernmental institutions are a product of self-coordination, strong voluntary institutions are more likely to be created in less competitive settings by governments that are less constrained by the anticipated outcome of the next election, thus, in settings where they are needed the least. These arguments are substantiated by material from a study of intergovernmental relations in Canada, Switzerland and the US.Less
This chapter argues that patterns of horizontal self-coordination across lower-level governments in federal systems are driven by willingness as much as capacity. Depending on the internal dynamics of lower-level governments (which drive their ‘outside relations’), strategic considerations systematically feed into collective attempts to solve shared policy problems that cross jurisdictional boundaries. The mismatch between the willingness and the capacity of governments to engage in collective problem-solving (i.e. the tension between political manoeuvring and functional needs) generates a range of paradoxes inherent in intergovernmental self-coordination. Just to mention one: Since intergovernmental institutions are a product of self-coordination, strong voluntary institutions are more likely to be created in less competitive settings by governments that are less constrained by the anticipated outcome of the next election, thus, in settings where they are needed the least. These arguments are substantiated by material from a study of intergovernmental relations in Canada, Switzerland and the US.
Uwe Puetter
- Published in print:
- 2014
- Published Online:
- October 2014
- ISBN:
- 9780198716242
- eISBN:
- 9780191784903
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198716242.003.0001
- Subject:
- Political Science, European Union
European integration since the 1992 Treaty of Maastricht has been characterized by an integration paradox. The review of key institutional choices at Maastricht and beyond demonstrates that member ...
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European integration since the 1992 Treaty of Maastricht has been characterized by an integration paradox. The review of key institutional choices at Maastricht and beyond demonstrates that member states were eager to avoid further transfers of ultimate decision-making powers to the supranational level, but were equally keen to expand cooperation to all major domains of public policy. These include the new areas of European Union activity economic governance, foreign, security and defence policy as well as employment and new aspects of social policy. These areas were mainly developed outside the community method and are at the centre of the new intergovernmentalism that currently shapes the image of EU politics. Policy coordination as a governance method has expanded massively in the post-Maastricht era and has informed permanent quests for consensus among member state governments.Less
European integration since the 1992 Treaty of Maastricht has been characterized by an integration paradox. The review of key institutional choices at Maastricht and beyond demonstrates that member states were eager to avoid further transfers of ultimate decision-making powers to the supranational level, but were equally keen to expand cooperation to all major domains of public policy. These include the new areas of European Union activity economic governance, foreign, security and defence policy as well as employment and new aspects of social policy. These areas were mainly developed outside the community method and are at the centre of the new intergovernmentalism that currently shapes the image of EU politics. Policy coordination as a governance method has expanded massively in the post-Maastricht era and has informed permanent quests for consensus among member state governments.
Uwe Puetter
- Published in print:
- 2014
- Published Online:
- October 2014
- ISBN:
- 9780198716242
- eISBN:
- 9780191784903
- Item type:
- book
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198716242.001.0001
- Subject:
- Political Science, European Union
This book offers a genuinely new perspective on the European Council and the Council of the European Union (‘the Council’). It portrays the two institutions as embodying the new intergovernmentalism ...
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This book offers a genuinely new perspective on the European Council and the Council of the European Union (‘the Council’). It portrays the two institutions as embodying the new intergovernmentalism in European Union governance. The book shows how post-Maastricht integration is based on an integration paradox. Member states are eager to foster integration, but insist that this is done outside the community method. This applies especially to prominent new areas of European Union activity including economic governance, common foreign, security and defence policy, and employment and social policy. The book explains how the evolution of these new areas has triggered institutional change. Policy coordination and intergovernmental agreement are identified as the main governance mechanisms. The European Council and the Council are at the centre of these processes. This book features a novel analytical framework—deliberative intergovernmentalism—to trace institutional change following the Treaty of Maastricht. Joint decision-making among member states is understood as non-legislative decision-making, which is geared towards permanent consensus seeking and direct member state involvement at all stages of the policy process. Empirically, the book offers one of the most comprehensive accounts of European Council and Council decision-making by covering two decades of European integration from the late 1990s until the years after the Lisbon Treaty came into force. Case studies analyse the European Council, the Eurogroup, the Economic and Financial Affairs Council, the Foreign Affairs Council, and the Employment, Social Policy, Health and Consumer Affairs Council as well as the role of senior coordination committees.Less
This book offers a genuinely new perspective on the European Council and the Council of the European Union (‘the Council’). It portrays the two institutions as embodying the new intergovernmentalism in European Union governance. The book shows how post-Maastricht integration is based on an integration paradox. Member states are eager to foster integration, but insist that this is done outside the community method. This applies especially to prominent new areas of European Union activity including economic governance, common foreign, security and defence policy, and employment and social policy. The book explains how the evolution of these new areas has triggered institutional change. Policy coordination and intergovernmental agreement are identified as the main governance mechanisms. The European Council and the Council are at the centre of these processes. This book features a novel analytical framework—deliberative intergovernmentalism—to trace institutional change following the Treaty of Maastricht. Joint decision-making among member states is understood as non-legislative decision-making, which is geared towards permanent consensus seeking and direct member state involvement at all stages of the policy process. Empirically, the book offers one of the most comprehensive accounts of European Council and Council decision-making by covering two decades of European integration from the late 1990s until the years after the Lisbon Treaty came into force. Case studies analyse the European Council, the Eurogroup, the Economic and Financial Affairs Council, the Foreign Affairs Council, and the Employment, Social Policy, Health and Consumer Affairs Council as well as the role of senior coordination committees.
Girum Abebe and Florian Schaefer
- Published in print:
- 2015
- Published Online:
- May 2016
- ISBN:
- 9780231175180
- eISBN:
- 9780231540773
- Item type:
- chapter
- Publisher:
- Columbia University Press
- DOI:
- 10.7312/columbia/9780231175180.003.0005
- Subject:
- Economics and Finance, Development, Growth, and Environmental
A detailed case study of industrial policy support in Ethiopia for two sectors—floriculture and leather processing—that have developed rapidly, with significant overall impact on the economy. Both ...
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A detailed case study of industrial policy support in Ethiopia for two sectors—floriculture and leather processing—that have developed rapidly, with significant overall impact on the economy. Both sectors benefitted from a wide gamut of activist industrial policies. The common elements were first, access to finance on reasonably attractive terms through the Development Bank of Ethiopia; second, close government-business consultations; and third, flexibility in altering forms and degrees of support.Less
A detailed case study of industrial policy support in Ethiopia for two sectors—floriculture and leather processing—that have developed rapidly, with significant overall impact on the economy. Both sectors benefitted from a wide gamut of activist industrial policies. The common elements were first, access to finance on reasonably attractive terms through the Development Bank of Ethiopia; second, close government-business consultations; and third, flexibility in altering forms and degrees of support.
Zeti Akhtar Aziz
- Published in print:
- 2016
- Published Online:
- January 2017
- ISBN:
- 9780262034623
- eISBN:
- 9780262333450
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262034623.003.0025
- Subject:
- Economics and Finance, Public and Welfare
This chapter touches on the progress and prospects for financial and macroeconomic policy coordination. There has been progress in the area of international financial stability, particularly in the ...
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This chapter touches on the progress and prospects for financial and macroeconomic policy coordination. There has been progress in the area of international financial stability, particularly in the design of the reform measures among the standard setting bodies (FSB, Basel, IOSCO). The chapter cautions however against national strategies that are independent of global arrangements, as these may result in more fragmented markets and would represent a retreat from globalization. In the area of macroeconomic policy, there have been efforts at cooperation and collaboration among emerging market economies (EMEs), but little progress has been made between the advanced economies and the EMEs.Less
This chapter touches on the progress and prospects for financial and macroeconomic policy coordination. There has been progress in the area of international financial stability, particularly in the design of the reform measures among the standard setting bodies (FSB, Basel, IOSCO). The chapter cautions however against national strategies that are independent of global arrangements, as these may result in more fragmented markets and would represent a retreat from globalization. In the area of macroeconomic policy, there have been efforts at cooperation and collaboration among emerging market economies (EMEs), but little progress has been made between the advanced economies and the EMEs.
Fabian Amtenbrink and René Repasi
- Published in print:
- 2017
- Published Online:
- April 2017
- ISBN:
- 9780198746560
- eISBN:
- 9780191808487
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780198746560.003.0010
- Subject:
- Law, EU Law, Constitutional and Administrative Law
This chapter examines the EU’s new economic policy coordination regime and specifically the secondary Union law rules in the shape of the Six Pack and Two Pack, as well as the TSCG and the ESM ...
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This chapter examines the EU’s new economic policy coordination regime and specifically the secondary Union law rules in the shape of the Six Pack and Two Pack, as well as the TSCG and the ESM Treaty. To this end the chapter develops an analytical framework for assessing the current legal framework. It then operationalizes this analytical framework by categorizing and analysing the main legal mechanisms in place to ensure compliance with the Union’s objectives geared towards ensuring fiscal stability in the EMU. The chapter then offers a qualitative evaluation of the potential of the current economic policy coordination framework to ensure compliance. Finally, this chapter makes some concrete proposals on how the current system can be improved and places these in the broader context of the future of EMU.Less
This chapter examines the EU’s new economic policy coordination regime and specifically the secondary Union law rules in the shape of the Six Pack and Two Pack, as well as the TSCG and the ESM Treaty. To this end the chapter develops an analytical framework for assessing the current legal framework. It then operationalizes this analytical framework by categorizing and analysing the main legal mechanisms in place to ensure compliance with the Union’s objectives geared towards ensuring fiscal stability in the EMU. The chapter then offers a qualitative evaluation of the potential of the current economic policy coordination framework to ensure compliance. Finally, this chapter makes some concrete proposals on how the current system can be improved and places these in the broader context of the future of EMU.
Mika Kortelainen, Douglas Laxton, and Jack Selody
- Published in print:
- 2014
- Published Online:
- September 2015
- ISBN:
- 9780262027182
- eISBN:
- 9780262324113
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262027182.003.0014
- Subject:
- Economics and Finance, Macro- and Monetary Economics
Using the International Monetary Fund's Global Integrated Monetary and Fiscal Model (GIMF), this chapter assesses the effectiveness of expansionary fiscal policy when monetary policy accommodates the ...
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Using the International Monetary Fund's Global Integrated Monetary and Fiscal Model (GIMF), this chapter assesses the effectiveness of expansionary fiscal policy when monetary policy accommodates the shock, such as was the case in the coordinated fiscal expansion of 2008–2009. After reviewing the literature on activist monetary and fiscal policies, the chapter describes the key features of the economic model in which the policy rules are imbedded. It then introduces simple fiscal policy as a countercyclical tool to show the dynamics of policy coordination and how features such as financial accelerators affect the dynamics of policy coordination. Three scenarios are given: an expansionary fiscal policy when the monetary policy rate has not reached its lower bound, an expansionary fiscal policy when the policy rate is at its lower bound, and an expansionary fiscal policy with the market perception of unsustainable debt. The simulations show that fiscal stimulus is significantly more effective in boosting economic output when the higher real interest rates that it can generate are offset by other policy measures.Less
Using the International Monetary Fund's Global Integrated Monetary and Fiscal Model (GIMF), this chapter assesses the effectiveness of expansionary fiscal policy when monetary policy accommodates the shock, such as was the case in the coordinated fiscal expansion of 2008–2009. After reviewing the literature on activist monetary and fiscal policies, the chapter describes the key features of the economic model in which the policy rules are imbedded. It then introduces simple fiscal policy as a countercyclical tool to show the dynamics of policy coordination and how features such as financial accelerators affect the dynamics of policy coordination. Three scenarios are given: an expansionary fiscal policy when the monetary policy rate has not reached its lower bound, an expansionary fiscal policy when the policy rate is at its lower bound, and an expansionary fiscal policy with the market perception of unsustainable debt. The simulations show that fiscal stimulus is significantly more effective in boosting economic output when the higher real interest rates that it can generate are offset by other policy measures.
Daniel J. Sargent
- Published in print:
- 2015
- Published Online:
- December 2014
- ISBN:
- 9780195395471
- eISBN:
- 9780199393633
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195395471.003.0007
- Subject:
- History, American History: 20th Century, Political History
After the oil crisis, Henry Kissinger began to reorient US foreign policy toward the management of interdependent economic relations among the industrialized countries. While Kissinger remained ...
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After the oil crisis, Henry Kissinger began to reorient US foreign policy toward the management of interdependent economic relations among the industrialized countries. While Kissinger remained committed to preserving US primacy in world affairs and to containing Soviet power, he had come to recognize that sustaining the Western Alliance depended on reorienting it toward the challenges that economic interdependence-a consequence of globalization-increasingly produced. Kissinger in 1974 began working to rally the Western nations around conservation efforts intended to mitigate the West’s dependence on imported oil, and to promote macroeconomic coordination among the industrialized countries to manage the effects of complex interdependence. Kissinger also engaged developing countries, eager to fend off the Third World’s demands for a New International Economic Order. This chapter argues that the mid-1970s were for Kissinger a phase of partial but creative accomplishment.Less
After the oil crisis, Henry Kissinger began to reorient US foreign policy toward the management of interdependent economic relations among the industrialized countries. While Kissinger remained committed to preserving US primacy in world affairs and to containing Soviet power, he had come to recognize that sustaining the Western Alliance depended on reorienting it toward the challenges that economic interdependence-a consequence of globalization-increasingly produced. Kissinger in 1974 began working to rally the Western nations around conservation efforts intended to mitigate the West’s dependence on imported oil, and to promote macroeconomic coordination among the industrialized countries to manage the effects of complex interdependence. Kissinger also engaged developing countries, eager to fend off the Third World’s demands for a New International Economic Order. This chapter argues that the mid-1970s were for Kissinger a phase of partial but creative accomplishment.
Charlotte Rommerskirchen
- Published in print:
- 2019
- Published Online:
- March 2019
- ISBN:
- 9780198829010
- eISBN:
- 9780191867446
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198829010.003.0003
- Subject:
- Political Science, Political Economy
Fiscal policy coordination is marred by a classic collective action problem; it pays to be egoistical. Member states have an incentive to under- or over-stimulate their economies (what this chapter ...
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Fiscal policy coordination is marred by a classic collective action problem; it pays to be egoistical. Member states have an incentive to under- or over-stimulate their economies (what this chapter terms growth and stability free riding), despite a common interest in coordinated policies. Building on Mancur Olson’s premise on collective action failure, the chapter develops three research questions that guide the empirical investigation. These relate to the group latency of EU membership, the evidence for collective action, and finally the provision of incentives to keep free riding at bay. The theme running through this chapter is that the interdependence of EU economies requires cooperative solutions to common problems.Less
Fiscal policy coordination is marred by a classic collective action problem; it pays to be egoistical. Member states have an incentive to under- or over-stimulate their economies (what this chapter terms growth and stability free riding), despite a common interest in coordinated policies. Building on Mancur Olson’s premise on collective action failure, the chapter develops three research questions that guide the empirical investigation. These relate to the group latency of EU membership, the evidence for collective action, and finally the provision of incentives to keep free riding at bay. The theme running through this chapter is that the interdependence of EU economies requires cooperative solutions to common problems.
Charlotte Rommerskirchen
- Published in print:
- 2019
- Published Online:
- March 2019
- ISBN:
- 9780198829010
- eISBN:
- 9780191867446
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/oso/9780198829010.003.0009
- Subject:
- Political Science, Political Economy
Looking ahead, the legacy of the crisis years shapes fiscal policy coordination. The two main aspects of change considered in this chapter are purview and pliancy. First, fiscal policy has ceased to ...
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Looking ahead, the legacy of the crisis years shapes fiscal policy coordination. The two main aspects of change considered in this chapter are purview and pliancy. First, fiscal policy has ceased to be defined in narrow ‘low-deficit’ targets and instead is set to encompass a twin notion of free riding: growth free riding and stability free riding. Second, fiscal policy coordination has become more flexible and as a result more adaptive to the challenges of sound public finances in the twenty-first century. While the institutional architecture for collective action has been strengthened, there is little reason to be optimistic as to the containment of endemic second-order free riding. Member states, this chapter argues, are continuing to rely on market discipline as the erratic enforcer of rules they are unable to bring to bear amongst themselves.Less
Looking ahead, the legacy of the crisis years shapes fiscal policy coordination. The two main aspects of change considered in this chapter are purview and pliancy. First, fiscal policy has ceased to be defined in narrow ‘low-deficit’ targets and instead is set to encompass a twin notion of free riding: growth free riding and stability free riding. Second, fiscal policy coordination has become more flexible and as a result more adaptive to the challenges of sound public finances in the twenty-first century. While the institutional architecture for collective action has been strengthened, there is little reason to be optimistic as to the containment of endemic second-order free riding. Member states, this chapter argues, are continuing to rely on market discipline as the erratic enforcer of rules they are unable to bring to bear amongst themselves.
Xavier Freixas, Luc Laeven, and José-Luis Peydró
- Published in print:
- 2015
- Published Online:
- September 2016
- ISBN:
- 9780262028691
- eISBN:
- 9780262328609
- Item type:
- chapter
- Publisher:
- The MIT Press
- DOI:
- 10.7551/mitpress/9780262028691.003.0010
- Subject:
- Economics and Finance, Public and Welfare
This chapter analyzes monetary policy and systemic risk, and the interrelation with macroprudential policy. It analyzes the role of monetary policy to reduce ex-ante build-up of financial imbalances ...
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This chapter analyzes monetary policy and systemic risk, and the interrelation with macroprudential policy. It analyzes the role of monetary policy to reduce ex-ante build-up of financial imbalances by leaning against the wind and to combat ex-post credit crunches and fire sales in asset prices. It discusses also the importance of short versus long term interest rates for financial institutions, notably banks. It explains the risk-taking channel of monetary policy, its relation with the credit channel, and summarizes the empirical evidence around the world on these channels. Moreover, the chapter explains that, as monetary policy affects credit and asset prices (thus influencing systemic risk), coordination between monetary and macroprudential policy is key. It also describes how macroprudential policy and its objective of financial stability could be in conflict with the price stability objective of monetary policy.Less
This chapter analyzes monetary policy and systemic risk, and the interrelation with macroprudential policy. It analyzes the role of monetary policy to reduce ex-ante build-up of financial imbalances by leaning against the wind and to combat ex-post credit crunches and fire sales in asset prices. It discusses also the importance of short versus long term interest rates for financial institutions, notably banks. It explains the risk-taking channel of monetary policy, its relation with the credit channel, and summarizes the empirical evidence around the world on these channels. Moreover, the chapter explains that, as monetary policy affects credit and asset prices (thus influencing systemic risk), coordination between monetary and macroprudential policy is key. It also describes how macroprudential policy and its objective of financial stability could be in conflict with the price stability objective of monetary policy.
Daniel J. Sargent
- Published in print:
- 2015
- Published Online:
- December 2014
- ISBN:
- 9780195395471
- eISBN:
- 9780199393633
- Item type:
- chapter
- Publisher:
- Oxford University Press
- DOI:
- 10.1093/acprof:oso/9780195395471.003.0009
- Subject:
- History, American History: 20th Century, Political History
In 1977, the Carter administration began working to implement a new guiding strategy for US foreign policy, oriented toward the promotion of human rights and the management of economic ...
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In 1977, the Carter administration began working to implement a new guiding strategy for US foreign policy, oriented toward the promotion of human rights and the management of economic interdependence among the advanced industrialized countries. Carter’s world order politics reflected both the oversights of the Nixon years and the influence of the Trilateral Commission. To manage economic globalization, the Carter administration promoted policy cooperation, its efforts culminating in the Bonn summit of the G-7 in 1978. To promote human rights, the Carter administration devised guidelines for tethering military and financial aid to foreign nations to human rights standards, and applied them with particular rigor in Latin America. By late 1978, however, Carter’s world order politics was already encountering difficulties: the administration’s human rights policy lacked consistency; policy coordination failed to stabilize the liberal world economy; and Iran, a longtime US ally, was imploding.Less
In 1977, the Carter administration began working to implement a new guiding strategy for US foreign policy, oriented toward the promotion of human rights and the management of economic interdependence among the advanced industrialized countries. Carter’s world order politics reflected both the oversights of the Nixon years and the influence of the Trilateral Commission. To manage economic globalization, the Carter administration promoted policy cooperation, its efforts culminating in the Bonn summit of the G-7 in 1978. To promote human rights, the Carter administration devised guidelines for tethering military and financial aid to foreign nations to human rights standards, and applied them with particular rigor in Latin America. By late 1978, however, Carter’s world order politics was already encountering difficulties: the administration’s human rights policy lacked consistency; policy coordination failed to stabilize the liberal world economy; and Iran, a longtime US ally, was imploding.
