[PEN-L:1795] 3% target EMU-IMF

[Massimo De Angelis <massimo@xxxxxxxxx>]

One of the criteria at the basis of current EEC "integration" and of
the slashing of public expenditure (and of current struggles in France) is
the 3% deficit-to-GDP ratio. I read in a recent posting by
D Shniad on IMF pressing Ottawa to slash unemployment benefits,
pensions, health care etc., that the 3%  target "would leave the . . .
debt-to-GDP ratio declining only slowly from a very high level".
I was puzzled by the same figure used by both Europe and Canada.
1. What are the targets used in other countries?
2. Does anybody know where the 3% target comes from both in
Europe and outside Europe? 3. Is it used as a common yeardstick for
global finances? 4. Is ths a criteria also used for the South?

Massimo De Angelis
(University of East London)