Assessing Next Generation EU

Codogno, Lorenzo and van den Noord, Paul (2021) Assessing Next Generation EU. LSE ‘Europe in Question’ Discussion Paper Series (166). European Institute, London School of Economics and Political Science, London, UK.

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Abstract

The unprecedented fiscal package adopted by the European Council in the summer of 2020 ―dubbed Next Generation EU―is vital for the recovery of the euro area from the pandemic shock. However, there are risks that targets will not be met and that it may prove difficult to muster the same degree of European ‘solidarity’ in the future. Computations with a stylised macroeconomic model indicate that an alternative approach, with ex ante risk sharing through the creation of a Eurobond and permanent fiscal capacity at the centre, would be at least as powerful, yet it would be more sustainable, automatic and timely.

Item Type:	Monograph (Discussion Paper)
Official URL:	https://www.lse.ac.uk/european-institute/research/...
Additional Information:	© 2021 The Author
Divisions:	European Institute
Subjects:	H Social Sciences > HJ Public Finance H Social Sciences > HB Economic Theory
JEL classification:	E - Macroeconomics and Monetary Economics > E3 - Prices, Business Fluctuations, and Cycles > E32 - Business Fluctuations; Cycles E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy Formation, Macroeconomic Aspects of Public Finance, Macroeconomic Policy, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization F - International Economics > F3 - International Finance > F33 - International Monetary Arrangements and Institutions
Date Deposited:	12 Jul 2024 13:06
Last Modified:	14 Sep 2024 04:47
URI:	http://eprints.lse.ac.uk/id/eprint/124232

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