Canada`s Looming Fiscal Squeeze - Macdonald
... play and the fiscal implications that follow are so large that governments will need to respond by making fundamental adjustments to their fiscal frameworks. As is always the case, the simple arithmetic of ...
... play and the fiscal implications that follow are so large that governments will need to respond by making fundamental adjustments to their fiscal frameworks. As is always the case, the simple arithmetic of ...
II. IMF Macroeconomic Policy Advice in the Financial Crisis
... policy in the crisis aftermath.2 The period of focus is from September 2008 through 2013. ...
... policy in the crisis aftermath.2 The period of focus is from September 2008 through 2013. ...
The euro area fiscal stance - ECB
... while allowing budgetary room for manoeuvre. Adjustments required to meet the MTO are defined in structural terms (i.e. net of the impact of the cycle and one-off measures) and therefore generally allow the full operation of automatic stabilisers. These should be sufficient to deal with normal cycli ...
... while allowing budgetary room for manoeuvre. Adjustments required to meet the MTO are defined in structural terms (i.e. net of the impact of the cycle and one-off measures) and therefore generally allow the full operation of automatic stabilisers. These should be sufficient to deal with normal cycli ...
Searching for Non-Monotonic Effects of Fiscal Policy:New
... to identify unambiguously the channels through which non-Keynesian effects occur. The IMF has also looked at the effects of large fiscal consolidations—measured as a cumulative primary fiscal adjustment of more than 5 percent of GDP—and concluded that they appear to be associated quite frequently wi ...
... to identify unambiguously the channels through which non-Keynesian effects occur. The IMF has also looked at the effects of large fiscal consolidations—measured as a cumulative primary fiscal adjustment of more than 5 percent of GDP—and concluded that they appear to be associated quite frequently wi ...
Fiscal rules in Latin America: a survey.
... (see Gavin and Perotti, 1997; Kaminsky et al., 2005; Daude et al., 2011) which contributes to macroeconomic volatility, depresses investment in real and human capital, hampers growth, increases fiscal vulnerability and has led to many debt defaults in the history of the region. This procyclical natu ...
... (see Gavin and Perotti, 1997; Kaminsky et al., 2005; Daude et al., 2011) which contributes to macroeconomic volatility, depresses investment in real and human capital, hampers growth, increases fiscal vulnerability and has led to many debt defaults in the history of the region. This procyclical natu ...
Upload paper - Harvard University
... through isolated shifts in fiscal variables, but through legislation (in most countries through a budget voted by Legislatures once a year) that includes multi-year announcements. To the extent that expectations matter, the multi-year nature of these announcements cannot be ignored. In this paper we ...
... through isolated shifts in fiscal variables, but through legislation (in most countries through a budget voted by Legislatures once a year) that includes multi-year announcements. To the extent that expectations matter, the multi-year nature of these announcements cannot be ignored. In this paper we ...
Estimating simple fiscal policy reaction functions for the euro area
... The crisis in the euro area and the need to consolidate public finances have provoked a renewed discussion about fiscal rules.1 Despite this interest in fiscal rules, not much consensus exists in the literature on the actual degree of anti-cyclical policy or consolidation in response to the debt rat ...
... The crisis in the euro area and the need to consolidate public finances have provoked a renewed discussion about fiscal rules.1 Despite this interest in fiscal rules, not much consensus exists in the literature on the actual degree of anti-cyclical policy or consolidation in response to the debt rat ...
Fiscal reaction function and fiscal fatigue
... economies have featured prominently in the academic and policy debates. In particular, the issue of early identification of fiscal fatigue that might be associated with sizeable efforts to restore fiscal sustainability has gained prominence. The large debt burden of most sovereigns, coupled in many ...
... economies have featured prominently in the academic and policy debates. In particular, the issue of early identification of fiscal fatigue that might be associated with sizeable efforts to restore fiscal sustainability has gained prominence. The large debt burden of most sovereigns, coupled in many ...
Fiscal Policy and Macroeconomic Stability: Automatic Stabilizers
... and Perotti, 2003). Changes in the cyclical balance give an estimate of the budgetary impact of aggregate fluctuations through the induced changes in tax bases and certain mandatory outlays. By construction, the cyclical balance is zero when the output gap is closed (actual output is on trend), and ...
... and Perotti, 2003). Changes in the cyclical balance give an estimate of the budgetary impact of aggregate fluctuations through the induced changes in tax bases and certain mandatory outlays. By construction, the cyclical balance is zero when the output gap is closed (actual output is on trend), and ...
ECB
... of fiscal multipliers through direct supply-side effects. For instance, fiscal consolidation is generally associated with smaller short-term multipliers if markets are convinced that the measures announced will be implemented in full and remain in place. In the presence of full credibility, markets’ ...
... of fiscal multipliers through direct supply-side effects. For instance, fiscal consolidation is generally associated with smaller short-term multipliers if markets are convinced that the measures announced will be implemented in full and remain in place. In the presence of full credibility, markets’ ...
NBER WORKING PAPER SERIES THE EURO AND FISCAL POLICY Antonio Fatas Ilian Mihov
... fluctuations because it reduces the effectiveness of automatic stabilizers (as argued by Melitz (2000) and Perry (2002)). Second, unsustainable plans will have to turn into sustainable ones by fiscal consolidations that are likely to have a short-term effect on the economy. Finally, high debt level ...
... fluctuations because it reduces the effectiveness of automatic stabilizers (as argued by Melitz (2000) and Perry (2002)). Second, unsustainable plans will have to turn into sustainable ones by fiscal consolidations that are likely to have a short-term effect on the economy. Finally, high debt level ...
Implementation of the Fiscal Compact in the Euro Area Member States
... Most Euro area member states have made considerable consolidation progress in recent years. Nevertheless, the Maastricht deficit criterion that restricts the public deficit to 3% of GDP was only met occasionally. A deficit below the threshold of 3% has been recorded only in Austria, Germany, Estonia ...
... Most Euro area member states have made considerable consolidation progress in recent years. Nevertheless, the Maastricht deficit criterion that restricts the public deficit to 3% of GDP was only met occasionally. A deficit below the threshold of 3% has been recorded only in Austria, Germany, Estonia ...
Cross-Country Spillover Effects and Fiscal Policy
... perspective, to answer this question requires addressing the issue of what the rationale for economic policy coordination is. Economic literature suggests that the justification for fiscal policy coordination should be sought in the existence of economic cross-country spillover effects. Exogenous s ...
... perspective, to answer this question requires addressing the issue of what the rationale for economic policy coordination is. Economic literature suggests that the justification for fiscal policy coordination should be sought in the existence of economic cross-country spillover effects. Exogenous s ...
Fiscal Rules, Discretionary Fiscal Policy and Macroeconomic
... extended to the other fiscal variables mentioned above, i.e. government spending (GS), primary spending (EXP) and primary receipts (REC). For the primary deficit (NL), which can also take negative values, however, we modify equation (1), taking the absolute difference (in per cent of GDP) rather tha ...
... extended to the other fiscal variables mentioned above, i.e. government spending (GS), primary spending (EXP) and primary receipts (REC). For the primary deficit (NL), which can also take negative values, however, we modify equation (1), taking the absolute difference (in per cent of GDP) rather tha ...
Monetary Policy and the Economy Q3/04 – Expansionary Fiscal
... The ability of fiscal policy to affect output and its components, as outlined by the standard Keynesian view, has been questioned by the Ricardian equivalence theorem. The concept of equivalence as such was first introduced by David Ricardo (1820, reprinted 1951), who stated that for a given path of ...
... The ability of fiscal policy to affect output and its components, as outlined by the standard Keynesian view, has been questioned by the Ricardian equivalence theorem. The concept of equivalence as such was first introduced by David Ricardo (1820, reprinted 1951), who stated that for a given path of ...
Estimating the Average Treatment Effect of Fiscal Policy
... national wealth? We must find two nations alike in every other respect, or at least possessed, in a degree exactly equal, of everything which conduces to national opulence, and adopting exactly the same policy in all their other affairs, but differing in this only, that one of them adopts a system o ...
... national wealth? We must find two nations alike in every other respect, or at least possessed, in a degree exactly equal, of everything which conduces to national opulence, and adopting exactly the same policy in all their other affairs, but differing in this only, that one of them adopts a system o ...
fiscal space for what? analytical issues from a human
... the success of MDG based national development strategies. ...
... the success of MDG based national development strategies. ...
eee06-Staehr3 3876917 en
... The conduct of fiscal policies has been one of the most contentious issues in the operation of the EMU. Fiscal policy issues will likely also play a major role in future years when the new EU members join the eurozone. The question concerns which fiscal policy challenges the transition countries wil ...
... The conduct of fiscal policies has been one of the most contentious issues in the operation of the EMU. Fiscal policy issues will likely also play a major role in future years when the new EU members join the eurozone. The question concerns which fiscal policy challenges the transition countries wil ...
FISCAL RULES 2014-03
... Subsequent studies are broadly in line with those initial findings (see, among others, Herrera and Vincent 2008), with some exceptions. For example, Badinger (2009) confirms the positive relationship between discretionary policy and output volatility, but not that between the former and inflation vo ...
... Subsequent studies are broadly in line with those initial findings (see, among others, Herrera and Vincent 2008), with some exceptions. For example, Badinger (2009) confirms the positive relationship between discretionary policy and output volatility, but not that between the former and inflation vo ...
Fiscal consolidation as a self-fulfilling prophecy on fiscal multipliers
... fiscal policy may lengthen the elevated fiscal multiplier period. In the case monetary policy has no leeway to cushion the effects of fiscal consolidation, fiscal actions may push the economy further into recession. In the aftermath of hysteresis effects this would increase the time span of the liqu ...
... fiscal policy may lengthen the elevated fiscal multiplier period. In the case monetary policy has no leeway to cushion the effects of fiscal consolidation, fiscal actions may push the economy further into recession. In the aftermath of hysteresis effects this would increase the time span of the liqu ...
PDF
... The 3 percent deficit rule can be disregarded when the deviation from it is small and temporary, while the 1/20th debt reduction rule can be disregarded when the country is assessed as doing enough fiscal consolidation. The European Commission has wide-ranging discretionary power in the assessment o ...
... The 3 percent deficit rule can be disregarded when the deviation from it is small and temporary, while the 1/20th debt reduction rule can be disregarded when the country is assessed as doing enough fiscal consolidation. The European Commission has wide-ranging discretionary power in the assessment o ...
analysing uk fiscal policy - UK Government Web Archive
... This prudent approach is implemented, among other things, by adopting a cautious assumption about the economy's trend growth rate. The Government's economic policies are designed to raise this growth rate beyond the level assumed for fiscal policy purposes. For the purposes of fiscal planning, howev ...
... This prudent approach is implemented, among other things, by adopting a cautious assumption about the economy's trend growth rate. The Government's economic policies are designed to raise this growth rate beyond the level assumed for fiscal policy purposes. For the purposes of fiscal planning, howev ...
Fiscal Policy and Macroeconomic Stability: New Evidence and
... policy challenges have revived the classic debate on the effectiveness of fiscal policy as an instrument of macroeconomic stabilization (van der Ploeg, 2005). On the theory side, the rapid development of micro-founded general equilibrium models with non-Ricardian features has allowed researchers to ...
... policy challenges have revived the classic debate on the effectiveness of fiscal policy as an instrument of macroeconomic stabilization (van der Ploeg, 2005). On the theory side, the rapid development of micro-founded general equilibrium models with non-Ricardian features has allowed researchers to ...
IOSR Journal of Business and Management (IOSR-JBM)
... deficits may most likely crowd-out private investment. But if it complements, it will most likely crowd-in private investment. They further add that public deficit of government can be rewritten in terms of the economy’s aggregate resources or saving-investment constraint. This is stated as: Public ...
... deficits may most likely crowd-out private investment. But if it complements, it will most likely crowd-in private investment. They further add that public deficit of government can be rewritten in terms of the economy’s aggregate resources or saving-investment constraint. This is stated as: Public ...
Reforming the Fiscal Framework. The Case of Sweden 1973-2013
... Fiscal policy was focused on fiscal consolidation after the acute crisis of the 1990s and the large budget deficits following in its wake. Shortly after the crisis, the foundations of a new fiscal framework were established. Balancing the budget became the primary target for fiscal policy against th ...
... Fiscal policy was focused on fiscal consolidation after the acute crisis of the 1990s and the large budget deficits following in its wake. Shortly after the crisis, the foundations of a new fiscal framework were established. Balancing the budget became the primary target for fiscal policy against th ...