Optimal Penalties on Deviations from Budgetary Targets

摘要: Beyond traditional arguments justifying the introduction of fiscal rules, this paper analyses their potential contribution to an indirect budgetary coordination between member countries a monetary union. Indeed, thanks appropriate penalties, noncooperative and decentralized equilibrium could get closer optimal where authorities cooperate. Our macroeconomic model shows that whatever penalty on structural deficit would be in case asymmetric shocks. A moderate excessive indebtedness level “normal times,” or shocks if openness trade price flexibility are sufficiently high, whereas share public consumption GDP, taxations rates, levels is weak Besides, symmetric shocks, useful decrease activism, even it doesn’t allow reaching first-best equilibrium. Furthermore, should always increasing function GDP taxation rates but decreasing strength automatic stabilizers, trade,