Measures taken by the government to keep overall economic production close to the level of potential output. – In terms of the central bank, efforts to safeguard the value of money. – Limiting budget deficits and government debt. In the EU, detailed provisions to this effect have already been included in the Maastricht Treaty, and at the beginning of 2013 a new pact entered into force, binding expenditure to revenue. All EU member states except the Czech Republic and the United Kingdom joined it. – See deficit hawk, Ecofin Council, monetary policy, budget deficit, cyclical policy, constancy criterion, Lisbon Agenda, Minhas-Gerais problem, sustainability, parafiscal, policy lag, forecasting model, rule, golden, debt brake, debt ratio. Stability and Growth Pact. – Cf. ECB Monthly Bulletin, May 2013, pp. 93 ff (in-depth analysis of the current state of euro area members; overviews; references).
Attention: The financial encyclopedia is protected by copyright and may only be used for private purposes without express consent!
University Professor Dr. Gerhard Merk, Dipl.rer.pol., Dipl.rer.oec.
Professor Dr. Eckehard Krah, Dipl.rer.pol.
E-mail address: info@ekrah.com
https://de.wikipedia.org/wiki/Gerhard_Ernst_Merk
https://www.jung-stilling-gesellschaft.de/merk/
https://www.gerhardmerk.de/