JOURNAL ARTICLE
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Fiscal Soundness and the Triangle of Stability
Buck, Florian | Schuknecht, Ludger
Credit and Capital Markets – Kredit und Kapital, Vol. 50 (2017), Iss. 2 : pp. 171–187
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Dr. Florian Buck, Federal Ministry of Finance, Wilhelmstr. 97, 10117 Berlin
Dr. Ludger Schuknecht, Federal Ministry of Finance, Wilhelmstr. 97, 10117 Berlin
Abstract
Average gross general government debt-to-GDP ratios in advanced economies have almost reached their highest levels since WWII. Moreover, growing fiscal risks emerge from adverse fiscal-financial linkages and aging societies. Policy-makers should take advantage of the current economic recovery and extraordinary measures by central banks to pursue growth-friendly fiscal consolidation, supported by comprehensive structural and financial sector reforms to improve the growth potential and reduce future fiscal liabilities. These are fundamental elements to enhance macroeconomic resilience and to pave the way for a timely exit from expansionary monetary policy. In case of EMU, a strict implementation of the EU"s fiscal and banking sector governance is essential.
Table of Contents
| Section Title | Page | Action | Price |
|---|---|---|---|
| Florian Buck / Ludger Schuknecht: Fiscal Soundness and the Triangle of Stability | 1 |