Déficits Jumeaux et Viabilité des Politiques Macroéconomiques

Summary:

This policy brief uses the Present Value Constraint (PVC) framework and the twin deficit hypothesis to look at the issue of fiscal and macroeconomic sustainability in the European Union’s (EU) countries of Greece, Ireland, Italy, Portugal and Spain and a subset of Mediterranean Partners (MPs) Egypt, Jordan, Morocco, Tunisia, and Lebanon. It answers the following question: How can the EU and MED countries in financial and debt crises curb macroeconomic imbalances (huge public debt, budget and current account deficits) at a time of low economic growth, high unemployment rates, rising inflation, and rising social demands for inclusion? Finally, this policy brief assesses past implemented International Monetary Fund (IMF) macroeconomic policies in light of the various austerity measures that have been introduced, and offers alternative potential macroeconomic policy solutions and remedies.