Comments on: Blir statsfinanserna sämre nu? http://www.gustavholmberg.com/tomrum/2003/09/14/blir-statsfinanserna-samre-nu/ En samling observationer av Gustav Holmberg. ISSN 1651-4335 Sat, 30 Aug 2008 05:45:24 +0000 http://wordpress.org/?v=2.3 By: Skeptikern http://www.gustavholmberg.com/tomrum/2003/09/14/blir-statsfinanserna-samre-nu/#comment-2518 Skeptikern Mon, 15 Sep 2003 14:29:16 +0000 http://www.gustavholmberg.com/tomrum/2003/09/14/blir-statsfinanserna-samre-nu/#comment-2518 Detta är väl ungefär samma slutsats som jag har dragit. Det är bättre att S allierar sig med Fp än med Mp och V(pk). Miljöpartiet är ju inte mycket till ett miljöparti när de vill lämna den största chansen till att miljölagarna efterlevs: EU. Vänstern efter Gudrun har ju börjat väcka till liv de gamla kommunister som hölls i schack då hon var partiledare. Bättre då att sossarna lierar sig med folkpartiet, som de gjort tidigare. Göran Persson själv är ju egentligen folkpartist, det är bara det att han valde sossarna för att det var större chans att han skulle kunna bli statsminister genom det partiet. Detta är väl ungefär samma slutsats som jag har dragit. Det är bättre att S allierar sig med Fp än med Mp och V(pk). Miljöpartiet är ju inte mycket till ett miljöparti när de vill lämna den största chansen till att miljölagarna efterlevs: EU. Vänstern efter Gudrun har ju börjat väcka till liv de gamla kommunister som hölls i schack då hon var partiledare. Bättre då att sossarna lierar sig med folkpartiet, som de gjort tidigare. Göran Persson själv är ju egentligen folkpartist, det är bara det att han valde sossarna för att det var större chans att han skulle kunna bli statsminister genom det partiet.

]]> By: Stefan Geens http://www.gustavholmberg.com/tomrum/2003/09/14/blir-statsfinanserna-samre-nu/#comment-2519 Stefan Geens Mon, 15 Sep 2003 04:09:26 +0000 http://www.gustavholmberg.com/tomrum/2003/09/14/blir-statsfinanserna-samre-nu/#comment-2519 The problem with the Growth and Stability pact is that it is procyclical. Economies in recessions should have an expansionary fiscal policy (unless you want to do a Bush and cut taxes), not a contraction of expenditures mandated by law. But in good times, governments should spend less. The pact is an orthodoxy whose benefits are in the perception of running a tight economic ship, but in fact it's a straightjacket, as Germany and France are finding out now. This is not just my opinion--Nobel winner Joe Stiglitz is a big critic of the pact--and if you forgive me this lengthy quote from a Wall Street Journal interview, here are his reasons: MR. STIGLITZ: A lot of people focused at the time [the pact was constructed] at the risk to the periphery — that Portugal could be in recession while everything else in the region was going fine — and then not having the flexibility to react to that. Policy would be set with a focus on Germany and France, and so much the worse for Portugal. As it turns out, it's Germany and France that are having the problems. Also, it was set up at a time when the main problem was inflation. But, of course, inflation isn't the problem today; unemployment is. France has made it very clear that it wants the Stability and Growth Pact redefined so it can have a more expansionary fiscal policy, and I think that is perfectly correct. As it is, Europe has adopted a regime that is pro-cyclical, which flies in the face of what it should be doing. The problem with the Growth and Stability pact is that it is procyclical. Economies in recessions should have an expansionary fiscal policy (unless you want to do a Bush and cut taxes), not a contraction of expenditures mandated by law. But in good times, governments should spend less.

The pact is an orthodoxy whose benefits are in the perception of running a tight economic ship, but in fact it’s a straightjacket, as Germany and France are finding out now.

This is not just my opinion–Nobel winner Joe Stiglitz is a big critic of the pact–and if you forgive me this lengthy quote from a Wall Street Journal interview, here are his reasons:

MR. STIGLITZ: A lot of people focused at the time [the pact was constructed] at the risk to the periphery — that Portugal could be in recession while everything else in the region was going fine — and then not having the flexibility to react to that. Policy would be set with a focus on Germany and France, and so much the worse for Portugal. As it turns out, it’s Germany and France that are having the problems. Also, it was set up at a time when the main problem was inflation. But, of course, inflation isn’t the problem today; unemployment is. France has made it very clear that it wants the Stability and Growth Pact redefined so it can have a more expansionary fiscal policy, and I think that is perfectly correct. As it is, Europe has adopted a regime that is pro-cyclical, which flies in the face of what it should be doing.

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