TY - JOUR
T1 - The myth ( or folly ) of the 3% deficit/GDP Maastricht ‘parameter’
AU - Pasinetti, Luigi Lodovico
PY - 1998
Y1 - 1998
N2 - The author argues that, for any chosen level of the public debt, a consequent social burden arises as the tax-percentage of GNP that can be imposed to service the debt. In this way, there is an infinite number of steady-state paths that are sustainable (and each of them might well be different from one country to another).
When considering Europe, the trouble is that the particular Maastricht couple of 3% Deficit/GNP and 60% Debt/GNP was chosen as a singularity, simply because at the time, those parameters characterized the German Economy.
AB - The author argues that, for any chosen level of the public debt, a consequent social burden arises as the tax-percentage of GNP that can be imposed to service the debt. In this way, there is an infinite number of steady-state paths that are sustainable (and each of them might well be different from one country to another).
When considering Europe, the trouble is that the particular Maastricht couple of 3% Deficit/GNP and 60% Debt/GNP was chosen as a singularity, simply because at the time, those parameters characterized the German Economy.
KW - Public debt sustainability
KW - Situation of main EU countries at the end of 1996
KW - total indebtedness
KW - Public debt sustainability
KW - Situation of main EU countries at the end of 1996
KW - total indebtedness
UR - http://hdl.handle.net/10807/81120
U2 - 10.1093/oxfordjournals.cje.a013701
DO - 10.1093/oxfordjournals.cje.a013701
M3 - Article
SN - 0309-166X
VL - 1998
SP - 103
EP - 116
JO - Cambridge Journal of Economics
JF - Cambridge Journal of Economics
ER -