Description: The behaviour 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 behaviour across countries, the interactions between fiscal and monetary authorities, and the long run factors shaping fiscal behaviour and sustainability. Authors include leading academic economists, who have contributed to shape the research in these matters, and policy makers (from the ECB, European Commission, IMF, OECD) who provide an institutionally-relevant angle to the analysis. Contents: Overview by the editors PART 1: HOW DO FISCAL AUTHORITIES BEHAVE? Strategies of Budgetary Consolidation in the 1990s; J.von Hagen, A.Hughes Hallet & R.Strauch Entry and Exit Dynamics from Excessive Deficits; A.Bayar & P. de Boer Convergence of Fiscal Policies in the Euro Area; O.De Bandt & F.Mongelli Fiscal policy and the size of governments; C. Martinez-Mongay Budgetary Institutions for Sustainable Public Finances; J.von Hagen, A.Hughes Hallet & R.Strauch PART 2: FISCAL POLICY FOR STABILISATION AND GROWTH How to allow the automatic stabilisers to operate fully? A policy maker's guide for EMU countries; Ph.Mills & A.Quinet Automatic Stabilisers in the 1990s and Beyond; P.van den Noord Fiscal Policy in the European Monetary Union: the Stabilisation Aspects; W.Roeger & H.Wijkander Gauging Ricardian Effects; A.Brunila Impact of Large Public Debt on Growth: a Discussion of Potential Channels; V.Tanzi & N.Chalk PART 3: MONETARY AND FISCAL POLICY INTERACTIONS IN EMU Debt, Deficits and the Behaviour of Monetary and Fiscal Authorities; J.Mélitz Interactions between Monetary and Fiscal Policy under a Stability Pact; M. Buti, J.In't Veld & W.Roeger Cent