Constitutionalisation of Fiscal Rules in Times of Financial Crises – a Cure or a Trap?

The global financial crisis of 2008 undoubtedly had a significant impact on the constitutional regulation of economic and financial matters. As a consequence of economic downturn six EU Member States (Germany, Spain, Slovakia, Slovenia, Italy and Hungary) have amended their constitutions. With economic crisis caused by global pandemic of, the new discussion about constitutional fiscal policy rules is expected. New economic downturn is one of the most important challenges for the constitutional fiscal rules, which undoubtedly will verify their functioning and effectiveness. The main purpose of this paper is to find out if constitutional fiscal policy rules is a cure or trap in times of financial crisis. According to the hypothesis adopted, constitutional fiscal rules can be an effective tool. The article has the following structure. In the first and second part I describe constitutional fiscal rules. The third part concerns the method of constitutionalisation. Subsequently, I am focus on effectiveness of constitutional fiscal policy rules. The last part of the article contains conclusions.

Advances in Finance, Accounting, and Economics - Global Challenges in Public Finance and International Relations ◽

A Discussion on Fiscal Policies Implemented in EU During and After the Great Recession

10.4018/978-1-5225-7564-1.ch009 ◽

2019 ◽

pp. 143-159

Author(s):

Gozde Es Polat ◽

Onur Polat

Keyword(s):

Fiscal Policy ◽

Financial Crisis ◽

Policy Implementation ◽

Financial Stability ◽

Global Financial Crisis ◽

Fiscal Policies ◽

The Great Recession ◽

Eu Member States ◽

The Eu

Along with the global financial crisis that took place in 2008, the ineffectiveness of other policies used for exiting from the crisis has brought back the feasibility of fiscal policy as an alternative. It is accepted that the only way to overcome the severe shrinking of the total demand during the 2008 global financial crisis is expansionary fiscal policy applied globally. However, differences in the subjective conditions of the EU member countries in particular have not made it possible to implement an expansionary fiscal policy for all of the member countries. More developed EU countries have begun to carry out from expansionary fiscal policies, while the less developed ones have begun to conduct contractionary fiscal policies. With the awareness that the financial stability is a public good, the obstacles, challenges on the global fiscal policy implementation by the EU member states are discussed by examining fiscal policies performed during and after the 2008 global financial crisis.

On the formation of a New Paradigm of fiscal Policy

Voprosy Ekonomiki ◽

10.32609/0042-8736-2013-6-152-158 ◽

2013 ◽

pp. 152-158 ◽

Cited By ~ 2

Author(s):

V. Senchagov

Keyword(s):

Public Finance ◽

Fiscal Policy ◽

Financial Crisis ◽

Global Financial Crisis ◽

Domestic Demand ◽

Real Economy ◽

New Paradigm ◽

Monetary Aggregate ◽

The Past ◽

Due to Russia’s exit from the global financial crisis, the fiscal policy of withdrawing windfall spending has exhausted its potential. It is important to refocus public finance to the real economy and the expansion of domestic demand. For this goal there is sufficient, but not realized financial potential. The increase in fiscal spending in these areas is unlikely to lead to higher inflation, given its actual trend in the past decade relative to M2 monetary aggregate, but will directly affect the investment component of many underdeveloped sectors, as well as the volume of domestic production and consumer demand.

Adapting the European System of Financial Supervision (ESFS) to the EEA Two-Pillar Structure – A Workable Solution?

European Company and Financial Law Review ◽

10.1515/ecfr-2019-0020 ◽

2019 ◽

Vol 16 (5) ◽

pp. 557-591

Author(s):

Andri Fannar Bergþórsson

Keyword(s):

Financial Crisis ◽

Global Financial Crisis ◽

National Level ◽

Financial Supervision ◽

Member States ◽

Eu Member States ◽

European System ◽

Pillar Structure ◽

The Eu

In response to the global financial crisis, the European System of Financial Supervision (ESFS) was created in 2010. Supranational bodies were established for different financial sectors to act as supervisors of sorts for national-level supervisors in EU Member States. This article focuses on how the system was adapted to three EFTA States that are not part of the EU but form the internal market along with EU Member States through the EEA Agreement – Iceland, Norway and Lichtenstein (EEA EFTA States). The aim is to clarify how ESFS has been incorporated into the EEA agreement and to discuss whether this a workable solution for the EEA EFTA States that have not transferred their sovereignty by name in the same manner as the EU Member States. One issue is whether the adaptation has gone beyond the limits of the two-pillar structure, as all initiative and work stem from the EU supranational bodies and not the EFTA pillar.

Austerity and State Rescaling

10.1332/policypress/9781529210910.003.0004 ◽

2021 ◽

pp. 71-90

Author(s):

Jonathan S. Davies

Keyword(s):

Financial Crisis ◽

Local Governments ◽

Global Financial Crisis ◽

Local State ◽

Fiscal Rules ◽

Place Marketing ◽

Political Capacity ◽

Revenue Streams ◽

National Governments

The story of austerity is entwined with experiments in city-regionalism, authoritarianism, fiscal and political centralisation and downloading or scalar dumping. Interpenetrating institutional, territorial and scalar restructurings have significant implications for politics and governing cultures, and relations between local states and citizens. This chapter focuses on the evolving powers and liabilities accruing to sub-national governments in the period since the Global Financial Crisis, read through revenue streams, fiscal rules and changes to spatial and jurisdictional capacities. The key finding across the eight cities is that municipalities face a variable and increasing mix of upward and downward constraints undermining their political capacity. Considered from the standpoint of governability, state rescaling in the period since the Crisis has tended to consolidate disciplinary neoliberalism, creating additional pressures on local governments to reinforce their tax bases through place-marketing. These processes also make cities more governable for national and provincial elites, pushing local state mechanisms into closer alignment with the administrative and financial priorities of upper tier apparatuses.

Lessons on Fiscal Policy After the Global Financial Crisis

Economic Policies since the Global Financial Crisis ◽

10.1007/978-3-319-60459-6_2 ◽

2017 ◽

pp. 41-84 ◽

Cited By ~ 1

Author(s):

Malcolm Sawyer

Keyword(s):

Fiscal Policy ◽

Financial Crisis ◽

Global Financial Crisis ◽

GLOBALIZATION EFFECTS ON CONTAGION RISKS IN FINANCIAL MARKETS

Ekonomicko-manazerske spektrum ◽

10.26552/ems.2021.1.38-54 ◽

2020 ◽

Vol 15 (1) ◽

pp. 38-54

Author(s):

Mariya Paskaleva ◽

Ani Stoykova

Keyword(s):

Financial Crisis ◽

Capital Markets ◽

Capital Market ◽

Stock Markets ◽

Global Financial Crisis ◽

Member States ◽

Eu Member States ◽

Contagion Effects ◽

The U.S

Financial globalization has opened international capital markets to investors and companies worldwide. However, the global financial crisis also caused massive stock price volatility due in part to global availability of market information. We explore ten EU member states (France, Germany, the United Kingdom, Belgium, Bulgaria, Romania, Greece, Portugal, Ireland, and Spain), and the USA. The explored period is March 3, 2003 to June 30, 2016, and includes the effects of the global financial crisis of 2008. The purpose of the article is to determine whether there is a contagion effect between the Bulgarian stock market and the other examined stock markets during the crisis period and whether these markets are efficient. We apply an augmented Dickey-Fuller test, DCC-GARCH model, autoregressive (AR) models, TGARCH model, and descriptive statistics. Our results show that a contagion between the Bulgarian capital market and the eight capital markets examined did exist during the global financial crisis of 2008. We register the strongest contagion effects from the U.S. and German capital markets on the Bulgarian capital market. The Bulgarian capital market is relatively integrated with the stock markets of Germany and the United State, which serves as an explanation of why the Bulgarian capital market was exposed to financial contagion effects from the U.S. capital market and the capital markets of EU member states during the crisis. We register statistically significant AR (1) for UK, Greece, Ireland, Portugal, Romania, and Bulgaria, and we can define these global capital markets as inefficient.

Managing the Global Financial Crisis and Economic Downturn

OECD Economic Outlook, Volume 2008 Issue 2 - OECD Economic Outlook ◽

10.1787/eco_outlook-v2008-2-2-en ◽

2008 ◽

pp. 7-9

Author(s):

Klaus Schmidt-Hebbel

Keyword(s):

Financial Crisis ◽

Global Financial Crisis ◽

Economic Downturn ◽

Fiscal policy during the global financial crisis

OECD Employment Outlook 2010 - OECD Employment Outlook ◽

10.1787/empl_outlook-2010-table41-en ◽

2010 ◽

Cited By ~ 2

Keyword(s):

Fiscal Policy ◽

Financial Crisis ◽

Global Financial Crisis ◽

Persuasion in Earnings Calls: A Diachronic Pragmalinguistic Analysis

International Journal of Business Communication ◽

10.1177/2329488417735644 ◽

2017 ◽

Vol 55 (3) ◽

pp. 275-292 ◽

Cited By ~ 3

Author(s):

Belinda Crawford Camiciottoli

Keyword(s):

Financial Crisis ◽

Financial Markets ◽

Financial Performance ◽

Global Financial Crisis ◽

Semantic Annotation ◽

Discourse Community ◽

Parallel Corpora ◽

The Third ◽

This study investigates persuasive language in earnings calls. These are routine events organized by companies to report their quarterly financial results. The analysis is based on the earnings calls of 10 companies in the third quarter of 2009, when financial markets were still suffering from the global financial crisis, and the third quarter of 2013 when markets had largely recovered. Earnings call transcripts were compiled in two parallel corpora (Crisis Corpus and Recovery Corpus), thus providing a diachronic perspective. Semantic annotation software was used to extract pragmalinguistic resources of persuasion. The Crisis Corpus had a higher frequency of persuasive items, as executives often emphasized progress and future hopes. However, the types of items were largely the same across the corpora. This suggests a well-consolidated linguistic protocol within this discourse community that transcends financial performance. The findings offer insights into how earnings call participants use persuasive language strategically to achieve their distinct professional objectives as responsible providers of information (executives) versus discerning seekers of information (analysts).

Are Auditors at Fault for the Collapse of Financial Institutions in Lithuania?

Baltic Journal of Law & Politics ◽

10.1515/bjlp-2016-0017 ◽

2016 ◽

Vol 9 (2) ◽

pp. 171-197

Author(s):

Julija Kiršienė ◽

Gabrielė Misevičiūtė

Keyword(s):

Financial Crisis ◽

Financial Institutions ◽

Global Financial Crisis ◽

Case Analysis ◽

Audit Market ◽

The Third ◽

The Past ◽

Public Role ◽

Audit Reports

Abstract The experience of the global financial crisis revealed that while many financial institutions were allowed to take excessive risks, the auditors failed in their duties to reasonably evaluate those risks as well as to inform the investing public about them. The issues of statutory auditors' liability and their public role are particularly relevant in Lithuania, considering the fact that over just the past few years the third and the fourth largest banks in Lithuania turned out to be insolvent. Analysis of legal actions against auditors of these banks highlighted certain shortcomings in the audit market and auditors' liability regulation, related to the quality and transparency of audit reports, auditors' accountability and independence requirements, and insurance of auditors’ liability. In the first part of the paper the case analysis of Ernst & Young Baltic’s responsibility for Snoras bankruptcy as well as Deloitte’s responsibility for Ūkio bankas’ insolvency, and discussion of the cases, are presented. The second part of the paper deals with the changes in regulation of the audit market in Lithuania and Europe, and issues left outside the reform.