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Review of Department Wright Report
Review of Department Wright Report

... fiscal rules, the Stability and Growth Pact, were respected, debt fell and spending appeared to be well below EU levels. The underlying dangers were either missed or ignored. ...
PDF - Centre for International Governance Innovation
PDF - Centre for International Governance Innovation

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NBER WORXING PAPER SERIES CURRENT ACCOUNT AND BUDGET DEFICITS IN AN

... finances its budget deficits through external borrowing and does not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3) below) domestic bonds issued by the government and held by ...
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Official PDF , 45 pages

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No Slide Title

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Tax mixes and the size of the welfare state: causal mechanisms and

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Macroeconomic Modeling for Monetary Policy
Macroeconomic Modeling for Monetary Policy

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Fiscal Rules for Resource Windfall Allocation: The Case of
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Peculiar Institutions: A British Perspective on Tax Policy

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This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Fiscal Institutions and Fiscal Performance

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How Powerful Is Monetary Policy in the Long Run?

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Goals of the Monetary Policy and the Stability of the Purchasing

... The changes in the offer of money, whether it’s about increase or decrease of the offer of money, it affects not only the price stability, but also the level of the interest rates, the employment, the investments and the level of the effective GDP. How the impact of the changes in the offer of money ...
PDF Download
PDF Download

... assumptions. In particular, the results do not change if capital income taxes in addition to labor income taxes are introduced or if the balanced-budget assumption is relaxed. The results are also robust to replacing the endogenous growth specification by one of exogenous growth. In the model, the p ...
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Fiscal multiplier

In economics, the fiscal multiplier (not to be confused with monetary multiplier) is the ratio of a change in national income to the change in government spending that causes it. More generally, the exogenous spending multiplier is the ratio of a change in national income to any autonomous change in spending (private investment spending, consumer spending, government spending, or spending by foreigners on the country's exports) that causes it. When this multiplier exceeds one, the enhanced effect on national income is called the multiplier effect. The mechanism that can give rise to a multiplier effect is that an initial incremental amount of spending can lead to increased consumption spending, increasing income further and hence further increasing consumption, etc., resulting in an overall increase in national income greater than the initial incremental amount of spending. In other words, an initial change in aggregate demand may cause a change in aggregate output (and hence the aggregate income that it generates) that is a multiple of the initial change.The existence of a multiplier effect was initially proposed by Keynes student Richard Kahn in 1930 and published in 1931. Some other schools of economic thought reject or downplay the importance of multiplier effects, particularly in terms of the long run. The multiplier effect has been used as an argument for the efficacy of government spending or taxation relief to stimulate aggregate demand.In certain cases multiplier values less than one have been empirically measured (an example is sports stadiums), suggesting that certain types of government spending crowd out private investment or consumer spending that would have otherwise taken place. This crowding out can occur because the initial increase in spending may cause an increase in interest rates or in the price level. In 2009, The Economist magazine noted ""economists are in fact deeply divided about how well, or indeed whether, such stimulus works"", partly because of a lack of empirical data from non-military based stimulus. New evidence came from the American Recovery and Reinvestment Act of 2009, whose benefits were projected based on fiscal multipliers and which was in fact followed - from 2010 to 2012 - by a slowing of job loss and private sector job growth.
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