The behavior of fiscal authorities and its interplay with budgetary institutions is a recent and increasingly important area of economic research, heightened by the move to single currency in Europe. This volume provides a systematic analysis of issues including the determinants of fiscal retrenchment strategies, the role of numerical and procedural rules, the composition of the adjustment, the (dis)similarity of fiscal behavior across countries, the interactions between fiscal and monetary authorities, and the long run factors shaping fiscal behavior and sustainability.

A decade after the creation of EMU, Italy is still adjusting to the policy environment created by the euro. This book assesses Italy's experience in EMU, identifies the main challenges ahead, outlines key policy issues, and highlights how Italys experience offers lessons for other euro area members.

The Stability and Growth Pact (SGP) encompasses the legislative text and political resolutions regulating fiscal policy and public finances in EMU. The contributions in this volume analyze the institutional, legal, theoretical and empirical aspects of the SGP, examine its development and evaluate its main implications. The authors include academic economists, who provide insightful analysis, and policy makers who have contributed to the shaping of the pact and have a direct responsibility for its implementation. This book is the definitive source of reference on the SGP for academics, policy makes and economists.

The Stability and Growth Pact (SGP) encompasses the legislative text and political resolutions regulating fiscal policy and public finances in EMU. The contributions in this volume analyse the institutional, legal, theoretical and empirical aspects of the SGP, examine its development and evaluate its main implications. The authors include academic economists, who provide insightful analysis, and policy makers who have contributed to the shaping of the pact and have a direct responsibility for its implementation. This book is the definitive source of reference on the SGP for academics, policy makes and economists.