Tilburg University Designing fiscal and monetary
... As a third extension, we include nominal public debt into the model. In addition to nominal wage contracts, nominal public debt provides an additional incentive for policymakers to generate unanticipated inflation. In fact, the connection between central bank independence and the level of public deb ...
... As a third extension, we include nominal public debt into the model. In addition to nominal wage contracts, nominal public debt provides an additional incentive for policymakers to generate unanticipated inflation. In fact, the connection between central bank independence and the level of public deb ...
Towards a Balanced Policy Mix under EMU: Co
... appropriate measure vis-à-vis the start of EMU.3 Third, the interest rate cut can best be understood by taking the business cycle stance in individual EMU countries (here: Germany and Italy) instead of the aggregate Euroland data into account. By this, the ECB -against its initial vowsimplicitly loo ...
... appropriate measure vis-à-vis the start of EMU.3 Third, the interest rate cut can best be understood by taking the business cycle stance in individual EMU countries (here: Germany and Italy) instead of the aggregate Euroland data into account. By this, the ECB -against its initial vowsimplicitly loo ...
European Commission
... year to the next was €2.30 for a €100 basket of purchases, then no more than thirty euro cents of this increase was due to the euro. When the Maastricht Treaty was politically approved by the Heads of State or Government at the European Council in Maastricht in 1991, the average inflation rate in th ...
... year to the next was €2.30 for a €100 basket of purchases, then no more than thirty euro cents of this increase was due to the euro. When the Maastricht Treaty was politically approved by the Heads of State or Government at the European Council in Maastricht in 1991, the average inflation rate in th ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... many circumstances in which the introduction of fixed rates would itself lead to serious inefficiencies of other sorts. As is common in this kind of research, the desirability of one type of monetary arrangement over another will depend to an important extent on the nature of the underlying shocks h ...
... many circumstances in which the introduction of fixed rates would itself lead to serious inefficiencies of other sorts. As is common in this kind of research, the desirability of one type of monetary arrangement over another will depend to an important extent on the nature of the underlying shocks h ...
Discussion Paper Series - Name
... Parallel to this period there was significant research progress into the econometric methodologies that could be used to estimate a non-linear multiplier. A central focus of many new papers was whether fiscal policy was more effective during recessions than expansions. Using non-linear econometric m ...
... Parallel to this period there was significant research progress into the econometric methodologies that could be used to estimate a non-linear multiplier. A central focus of many new papers was whether fiscal policy was more effective during recessions than expansions. Using non-linear econometric m ...
Debt and monetary policy: comments on Jagjit S Chadha, Luisa
... The mechanism in Chadha et al seems closest to the fifth of these channels, the bank lending effect, though it may also have some elements of the third channel, the liquidity premium effect. Chart 4 shows a measure of the risk premium in the UK interbank market as indicated by the £ LIBOR-OIS spread ...
... The mechanism in Chadha et al seems closest to the fifth of these channels, the bank lending effect, though it may also have some elements of the third channel, the liquidity premium effect. Chart 4 shows a measure of the risk premium in the UK interbank market as indicated by the £ LIBOR-OIS spread ...
EVOLUTION AND RATIONALITY OF BUDGET INSTITUTIONS IN
... crisis, the first modern organization of the budgeting process did not appear until 189210, in the midst of a crisis provoked by large increases of the monetary base induced by the money financing of the budget.11 This first "organic budget law" (Ley 33, October of 1892) contained a balanced-budget ...
... crisis, the first modern organization of the budgeting process did not appear until 189210, in the midst of a crisis provoked by large increases of the monetary base induced by the money financing of the budget.11 This first "organic budget law" (Ley 33, October of 1892) contained a balanced-budget ...
NBER WORKING PAPER SERIES COORDINATION OF MONETARY AND Warwick J. Mckibbin
... expressed in this paper do not necessarily reflect those of the institutions with which the authors are affiliated. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed are those of the authors and not those of the National Bureau of Econ ...
... expressed in this paper do not necessarily reflect those of the institutions with which the authors are affiliated. The research reported here is part of the NBER's research program in International Studies. Any opinions expressed are those of the authors and not those of the National Bureau of Econ ...
Monetary–Fiscal Policy Interactions under Implementable Monetary
... support. Interest rate rules of this form have been criticized by McCallum (1999) among others as not being implementable. To address this concern, instead we assume that policy is implemented using rules conditional on observable data. Specifically, Rt = α E t πt+ j + θt j = −1, 1, ...
... support. Interest rate rules of this form have been criticized by McCallum (1999) among others as not being implementable. To address this concern, instead we assume that policy is implemented using rules conditional on observable data. Specifically, Rt = α E t πt+ j + θt j = −1, 1, ...
Monetary and fiscal policy interaction: what is the role of the
... The imposition of taxes generates frictions due to state–taxpayer interactions. These frictions relate the behaviour of taxpayers, stipulated by economic, sociological and psychological characteristics, to tax administration aspects, like tax collection and tax compliance, thus resulting in a loss o ...
... The imposition of taxes generates frictions due to state–taxpayer interactions. These frictions relate the behaviour of taxpayers, stipulated by economic, sociological and psychological characteristics, to tax administration aspects, like tax collection and tax compliance, thus resulting in a loss o ...
Central bank independence and the monetary instrument problem
... the fiscal and monetary authorities in each time period; accordingly, each authority takes the policy rules of its current opponent and all future authorities as given. Optimal policy corresponds to a Nash equilibrium in the game between authorities. Since this game is dynamic, strategies can in pri ...
... the fiscal and monetary authorities in each time period; accordingly, each authority takes the policy rules of its current opponent and all future authorities as given. Optimal policy corresponds to a Nash equilibrium in the game between authorities. Since this game is dynamic, strategies can in pri ...
Debt Stabilization and Macroeconomic Volatility in Monetary Unions
... risk premia of government debt of euro area countries not only after the 2007-08 financial crisis and the outbreak of the still ongoing euro area crisis, but in the period before these events. As pointed out by Arghyrou and Kontonikas (2011), “This regime-shift not only explains the sudden escalatio ...
... risk premia of government debt of euro area countries not only after the 2007-08 financial crisis and the outbreak of the still ongoing euro area crisis, but in the period before these events. As pointed out by Arghyrou and Kontonikas (2011), “This regime-shift not only explains the sudden escalatio ...
Monetary-fiscal policy mix with financial frictions (1 MB )
... The US recovery has been more robust than that experienced by the Euro area. By the end of 2014, US real GDP was 10 per cent above its value in 2007, while the Euro area GDP matched the 2007 level. This faster recovery implied a 5-per cent cumulative higher price level in the United States measured ...
... The US recovery has been more robust than that experienced by the Euro area. By the end of 2014, US real GDP was 10 per cent above its value in 2007, while the Euro area GDP matched the 2007 level. This faster recovery implied a 5-per cent cumulative higher price level in the United States measured ...
Download
... from M3. All national central banks (NCBs) in the euro area now regularly report data on the money market fund share/unit holdings of non-euro area residents in accordance with the general reporting obligations in the context of money and banking statistics. From a conceptual point of view, M3 shoul ...
... from M3. All national central banks (NCBs) in the euro area now regularly report data on the money market fund share/unit holdings of non-euro area residents in accordance with the general reporting obligations in the context of money and banking statistics. From a conceptual point of view, M3 shoul ...
No. 537 - Banco de la República
... inflation. The contrary case could be interesting, because current output (as well as the output gap) would increase, thus forcing up the price level, if individuals believe current government expenditure (in t) is greater than its trend in long‐term sustainability (in t+1). In short ...
... inflation. The contrary case could be interesting, because current output (as well as the output gap) would increase, thus forcing up the price level, if individuals believe current government expenditure (in t) is greater than its trend in long‐term sustainability (in t+1). In short ...
Paper Money - Sims page data
... restore its balance sheet. But seignorage revenue depends on the inflation rate, generally increasing with the rate of inflation except at extremely high inflation rates. A central bank with a severely enough impaired balance sheet may not be able to pin down the price level without treasury assista ...
... restore its balance sheet. But seignorage revenue depends on the inflation rate, generally increasing with the rate of inflation except at extremely high inflation rates. A central bank with a severely enough impaired balance sheet may not be able to pin down the price level without treasury assista ...
The Commission - European Parliament
... visionaries regenerated it, proceeding from the bare bones of shared ideals such as peace as the supreme value, a democratic system of freedoms as the tool of coexistence, economic and social progress as the material bedrock of the system, and union as the long-term goal and the cement to bind the o ...
... visionaries regenerated it, proceeding from the bare bones of shared ideals such as peace as the supreme value, a democratic system of freedoms as the tool of coexistence, economic and social progress as the material bedrock of the system, and union as the long-term goal and the cement to bind the o ...
Working Paper No. 819
... named seigniorage. Seigniorage income is a form of public revenue and has increased in the wake of the 2008 financial crisis because of the unconventional monetary policies followed by central banks. In general, seigniorage profits do not regularly return to the government; they remain with the cent ...
... named seigniorage. Seigniorage income is a form of public revenue and has increased in the wake of the 2008 financial crisis because of the unconventional monetary policies followed by central banks. In general, seigniorage profits do not regularly return to the government; they remain with the cent ...
Regional Currency Arrangements: Insights from Europe
... union in particular, was stimulated by the breakdown of the Bretton Woods System and, between 1979 and 1987, by the frequent and very significant realignments in the newly created ERM I. In June 1988, an important decision was taken with regard to establishing the single market: to remove all exchan ...
... union in particular, was stimulated by the breakdown of the Bretton Woods System and, between 1979 and 1987, by the frequent and very significant realignments in the newly created ERM I. In June 1988, an important decision was taken with regard to establishing the single market: to remove all exchan ...
The New Monetary Unit
... • Although it is very difficult to estimate the benefits of the change of monetary unit, in Mexico there is a generalized perception that the introduction of the new unit permitted ample savings and considerably simplified monetary transactions. • The main ingredients of what is considered a success ...
... • Although it is very difficult to estimate the benefits of the change of monetary unit, in Mexico there is a generalized perception that the introduction of the new unit permitted ample savings and considerably simplified monetary transactions. • The main ingredients of what is considered a success ...
REASSESSING THE EFFECT OF FISCAL AND MONETARY
... Iran and most developed countries is that its government has unlimited power in the use of monetary and fiscal politics in the interests of fostering economic growth. The Iranian president has the power to dismiss the Central Bank’s president (which occurred in 2008), whenever monetary policy which ...
... Iran and most developed countries is that its government has unlimited power in the use of monetary and fiscal politics in the interests of fostering economic growth. The Iranian president has the power to dismiss the Central Bank’s president (which occurred in 2008), whenever monetary policy which ...
The 2016 Convergence Report: Assessment of
... But belonging to the euro area is much more than sharing a currency. It is about belonging to a community based on responsibility, solidarity and mutual benefits. It should also be stressed that the benefits of the euro are not unconditional and depend on the Member State's capacity to operate smoot ...
... But belonging to the euro area is much more than sharing a currency. It is about belonging to a community based on responsibility, solidarity and mutual benefits. It should also be stressed that the benefits of the euro are not unconditional and depend on the Member State's capacity to operate smoot ...
국회의장업무보고_20050124
... stimulate public bodies to manage their financial operations more efficiently In order to do this, it is necessary to enhance the legislative capacity to deal with budget issues. ...
... stimulate public bodies to manage their financial operations more efficiently In order to do this, it is necessary to enhance the legislative capacity to deal with budget issues. ...
This PDF is a selection from a published volume from... Economic Research Volume Title: Europe and the Euro
... the EMU in order to pursue a tighter policy. Barry explains the risks of that strategy—particularly, the capital inflow that might occur—but recognizes that the economic consequences for a strong country leaving the EMU would be less adverse than for a weak-currency country. Although the problem of ...
... the EMU in order to pursue a tighter policy. Barry explains the risks of that strategy—particularly, the capital inflow that might occur—but recognizes that the economic consequences for a strong country leaving the EMU would be less adverse than for a weak-currency country. Although the problem of ...
European Fiscal Compact
The Fiscal Compact (formally, the Treaty on Stability, Coordination and Governance in the Economic and Monetary Union; also referred to as TSCG or more plainly the Fiscal Stability Treaty), is an intergovernmental treaty introduced as a new stricter version of the Stability and Growth Pact, signed on 2 March 2012 by all member states of the European Union (EU), except the Czech Republic, the United Kingdom, and Croatia (subsequently acceding the EU in July 2013). The treaty entered into force on 1 January 2013 for the 16 states which completed ratification prior of this date. As of 1 April 2014, it had been ratified and entered into force for all 25 signatories.While the entire treaty applies to ratifying eurozone states, only Title V, covering euro summit participation, automatically applies for ratifying non-eurozone member states. However, these states can attach a declaration to their instrument of ratification stating their desire to also be bound by the treaty's fiscal provisions (Title III) and/or enhanced economic coordination provisions (Title IV). Both Denmark and Romania have declared themselves to be bound by all treaty titles, while Bulgaria declared itself bound by all treaty titles except of Title IV.Member states bound by the fiscal provisions of the treaty will face annual fines up to 0.1% of GDP, if they after one year of the Fiscal Compact entering into force for them, have failed to enact a domestic ""implementation law"" establishing a self-correcting mechanism, guided by surveillance of a governmentally independent fiscal advisory council, which shall guarantee their national budget be in balance or surplus under the treaty's definition. The treaty defines a balanced budget as a general budget deficit not exceeding 3.0% of the gross domestic product (GDP), and a structural deficit not exceeding a country-specific Medium-Term budgetary Objective (MTO) which at most can be set to 0.5% of GDP for states with a debt‑to‑GDP ratio exceeding 60% - or at most 1.0% of GDP for states with debt levels within the 60%-limit. The country-specific MTOs are recalculated every third year and might be set at stricter levels compared to what the treaty allows at most. The treaty also contains a direct copy of the ""debt brake"" criteria outlined in the Stability and Growth Pact, which defines the rate at which debt levels above the limit of 60% of GDP shall decrease.If the budget or estimated fiscal account for any ratifying state is found to be noncompliant with the deficit or debt criteria, the state is obliged to rectify the issue. If a state is in breach at the time of the treaty's entry into force, the correction will be deemed to be sufficient if it delivers sufficiently large annual improvements to remain on a country specific predefined ""adjustment path"" towards the limits at a midterm horizon. Should a state suffer a significant recession, it will be exempted from the requirement to deliver a fiscal correction for as long as it lasts.Despite being an International treaty outside the EU legal framework, all treaty provisions function as an extension to existing EU regulations, utilising the same reporting instruments and organisational structures already created within EU in the three areas: Budget discipline enforced by Stability and Growth Pact (extended by Title III), Coordination of economic policies (extended by Title IV), and Governance within the EMU (extended by Title V). The treaty states that the signatories shall attempt to incorporate the Fiscal Compact into the EU's legal framework, on the basis of an assessment of the experience with its implementation, by 1 January 2018 at the latest.