Abstract
This paper analyzes fiscal restrictions in the United States as a way of shedding light on the likely effects of the excessive deficits provisions of the Maastricht Treaty. We consider their impact on levels of deficits, on the cost of borrowing, and on the stabilization function of fiscal policy. If U.S. experience is any guide, Maastricht's fiscal restraints are enforceable, but if vigorously enforced they could significantly diminish the stabilization capacity of national budgets.
Sign-in/Register to access full text options 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
