NBER WORKING PAPER SERIES DE FACTO FISCAL SPACE AND FISCAL STIMULUS:
... it. In attempts to clarify this fuzzy concept, Heller (2005) defined it “as room in a government’s budget that allows it to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy.” Our paper aims at defining a measura ...
... it. In attempts to clarify this fuzzy concept, Heller (2005) defined it “as room in a government’s budget that allows it to provide resources for a desired purpose without jeopardizing the sustainability of its financial position or the stability of the economy.” Our paper aims at defining a measura ...
Fiscal Stimulus and Potential Inflationary Risks
... Abstract: The fiscal response in India to deal with the contagion from the global crisis during 2008-10 was driven by the need to arrest a major slowdown in economic growth. Given the usual inflexibility of fiscal deficit once it reaches a high level, as has been experienced by India in the past, th ...
... Abstract: The fiscal response in India to deal with the contagion from the global crisis during 2008-10 was driven by the need to arrest a major slowdown in economic growth. Given the usual inflexibility of fiscal deficit once it reaches a high level, as has been experienced by India in the past, th ...
1. assessing the stance of irish fiscal policy
... trong economic growth and buoyant public finances present the Government with both opportunities and dilemmas in formulating Budget 2001. In addition to targeting resources at specific areas and continuing the process of tax reform, the budget is an opportunity to set fiscal policy to steer the econ ...
... trong economic growth and buoyant public finances present the Government with both opportunities and dilemmas in formulating Budget 2001. In addition to targeting resources at specific areas and continuing the process of tax reform, the budget is an opportunity to set fiscal policy to steer the econ ...
Assessing Fiscal Policy in an Accrual Environment
... transactions, while a drawback for assessing economic impact, is an advantage for assessing financial sustainability. This is evident when considering the features of the two most common accrual measures: the operating balance and change in net assets. The operating balance, defined as revenues less ...
... transactions, while a drawback for assessing economic impact, is an advantage for assessing financial sustainability. This is evident when considering the features of the two most common accrual measures: the operating balance and change in net assets. The operating balance, defined as revenues less ...
The Greek fiscal crisis and the role of fiscal governance
... features among many OECD countries since the early 1970s (OECD, 2007a). Fiscal deficits, once small and controlled in most of such countries, have soared after the outbreak of the recent global financial crisis, as a result of both the direct fiscal costs of bank and other enterprise rescue operatio ...
... features among many OECD countries since the early 1970s (OECD, 2007a). Fiscal deficits, once small and controlled in most of such countries, have soared after the outbreak of the recent global financial crisis, as a result of both the direct fiscal costs of bank and other enterprise rescue operatio ...
NBER WORKING PAPER SERIES
... well—defined is first framed in a simple certainty model with nondistortionary policies, and then in settings with uncertain policy, distortionary policy, and liquidity constraints. As an alternstive to economically arbitrary deficits, the paper indicates that the "Fiscal Balance Rule" is one norm f ...
... well—defined is first framed in a simple certainty model with nondistortionary policies, and then in settings with uncertain policy, distortionary policy, and liquidity constraints. As an alternstive to economically arbitrary deficits, the paper indicates that the "Fiscal Balance Rule" is one norm f ...
A new budget rule for Germany
... • Article 115 not so much in line with the objective of long-term sustainability • Methodological criticism of Article 115 – investment concept – exception rule – no enforcement during execution Bundesministerium der Finanzen Berlin ...
... • Article 115 not so much in line with the objective of long-term sustainability • Methodological criticism of Article 115 – investment concept – exception rule – no enforcement during execution Bundesministerium der Finanzen Berlin ...
Measuring the Unfunded Obligations of European Countries
... discipline, but large portions of their government budgets are funded on a pay-as-you-go basis. That means that no real resources are set aside and invested each year by government or individuals to prefund future expenditures on such programs. Spending on promised retirement and healthcare benefits ...
... discipline, but large portions of their government budgets are funded on a pay-as-you-go basis. That means that no real resources are set aside and invested each year by government or individuals to prefund future expenditures on such programs. Spending on promised retirement and healthcare benefits ...
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... The conclusion has been that fiscal stabilisation policy is likely to be badly timed and procyclical, especially in booms because it is politically much more difficult then to pursue restrictive policies than it is to pursue expansionary policies in recessions.2 The current conventional wisdom is th ...
... The conclusion has been that fiscal stabilisation policy is likely to be badly timed and procyclical, especially in booms because it is politically much more difficult then to pursue restrictive policies than it is to pursue expansionary policies in recessions.2 The current conventional wisdom is th ...
Proposal for a Stabilisation Fund for the EMU
... Before EMU came into being, many studies were undertaken on how its members would adjust to asymmetric macroeconomic shocks after the adoption of the euro. Based on the conclusions of the traditional theory of optimal currency areas and the empirical analysis of existing currency unions, most studie ...
... Before EMU came into being, many studies were undertaken on how its members would adjust to asymmetric macroeconomic shocks after the adoption of the euro. Based on the conclusions of the traditional theory of optimal currency areas and the empirical analysis of existing currency unions, most studie ...
Fiscal Policy Reaction in the Short Term for Assessing Fiscal
... panel set. One year later, Afonso and Rault (2008) conducted the first panel analysis of fiscal sustainability encompassing the enlarged set of 27 EU countries. They used data spanning the period 1960–2006 and reached the conclusion that fiscal policy is not sustainable within the EU-27 panel. Moreo ...
... panel set. One year later, Afonso and Rault (2008) conducted the first panel analysis of fiscal sustainability encompassing the enlarged set of 27 EU countries. They used data spanning the period 1960–2006 and reached the conclusion that fiscal policy is not sustainable within the EU-27 panel. Moreo ...
The Greek Fiscal Crisis and the Role of Fiscal Governance
... features among many OECD countries since the early 1970s (OECD, 2007a). Fiscal deficits, once small and controlled in most of such countries, have soared after the outbreak of the recent global financial crisis, as a result of both the direct fiscal costs of bank and other enterprise rescue operatio ...
... features among many OECD countries since the early 1970s (OECD, 2007a). Fiscal deficits, once small and controlled in most of such countries, have soared after the outbreak of the recent global financial crisis, as a result of both the direct fiscal costs of bank and other enterprise rescue operatio ...
FISCAL POLICY IN BRAZIL AND JAPAN WHAT CAN BE LEARNED
... One issue that has significantly been considered as an important factor to allow countries promote economic growth in a sustainable basis is the way fiscal policy is conducted. This paper will be concentrated in analyzing fiscal policies during the last 10 years for the two countries. In Brazil it h ...
... One issue that has significantly been considered as an important factor to allow countries promote economic growth in a sustainable basis is the way fiscal policy is conducted. This paper will be concentrated in analyzing fiscal policies during the last 10 years for the two countries. In Brazil it h ...
1 Tales of Expansionary Fiscal Contractions in Two European
... The first sustained attempt to correct the situation took place between 1983 and 1986. While the success of this first fiscal adjustment is debated (Dornbusch, 1989 and Honohan, 1992) it is beyond doubt that it was not accompanied by expansionary effects. ...
... The first sustained attempt to correct the situation took place between 1983 and 1986. While the success of this first fiscal adjustment is debated (Dornbusch, 1989 and Honohan, 1992) it is beyond doubt that it was not accompanied by expansionary effects. ...
NUMERICAL FISCAL RULES FOR FISCAL DISCIPLINE Mihaela
... As a consequence, the Treaty on Stability, Coordination and Governance (TSCG or the Fiscal Compact), seen as a way of strengthening the Stability and Growth Pact, introduces a key element of fiscal discipline, which is now every national government‘s own legal obligation. It involves the adoption of ...
... As a consequence, the Treaty on Stability, Coordination and Governance (TSCG or the Fiscal Compact), seen as a way of strengthening the Stability and Growth Pact, introduces a key element of fiscal discipline, which is now every national government‘s own legal obligation. It involves the adoption of ...
Revisiting the Link between Growth and Federalism: A Bayesian
... average. Still, the majority of countries in the sample did not see significant changes over time. This includes constitutionally decreed federal countries (which could have been a ...
... average. Still, the majority of countries in the sample did not see significant changes over time. This includes constitutionally decreed federal countries (which could have been a ...
DISCRETIONARY POLICY INTERACTIONS AND THE
... institutional setting (the balanced-budget-over-the-cycle feature of the SGP), that only allows for automatic stabilization in “bad times”. If we are unable to rule out effects on output of discretionary fiscal policy, the main reason for restricting government action to automatic stabilization drop ...
... institutional setting (the balanced-budget-over-the-cycle feature of the SGP), that only allows for automatic stabilization in “bad times”. If we are unable to rule out effects on output of discretionary fiscal policy, the main reason for restricting government action to automatic stabilization drop ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Generational Accounting around the World
... framed in a simple certainty model with nondistortionary policies, and then in settings with uncertain policy, distortionary policy, and liquidity constraints. As an alternative to economically arbitrary deficits, the paper indicates that the “fiscal balance rule” is one norm for measuring whether c ...
... framed in a simple certainty model with nondistortionary policies, and then in settings with uncertain policy, distortionary policy, and liquidity constraints. As an alternative to economically arbitrary deficits, the paper indicates that the “fiscal balance rule” is one norm for measuring whether c ...
New Fiscal ROSCs and PEFA Assessments: Two Complementary …
... ROSC assessments tended to be exhaustive rather than risk-based – Place equal weight on all elements of the Code – Difficult to judge relative seriousness of different fiscal reporting gaps – Include a large number of unprioritized recommendations ...
... ROSC assessments tended to be exhaustive rather than risk-based – Place equal weight on all elements of the Code – Difficult to judge relative seriousness of different fiscal reporting gaps – Include a large number of unprioritized recommendations ...
COM COM(2008)0248 EN
... stipulates that “the criterion on the convergence of interest rates (…) shall mean that, observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than 2 percentage points that of, at most, the three best ...
... stipulates that “the criterion on the convergence of interest rates (…) shall mean that, observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than 2 percentage points that of, at most, the three best ...
2012.05.18 Full Paper - Malcolm Sawyer
... A budget deficit can only decline if it is accompanied by some combination of lower savings, higher investment and lower capital inflow (which in turn corresponds to smaller current account deficit with an increase in exports relative to imports). There are then two ways to try to reduce a budget de ...
... A budget deficit can only decline if it is accompanied by some combination of lower savings, higher investment and lower capital inflow (which in turn corresponds to smaller current account deficit with an increase in exports relative to imports). There are then two ways to try to reduce a budget de ...
Title Tales of Expansionary Fiscal Contractions in Two European
... provided they continue his party’s attempt to correct the public finances. FitzGerald’s successor, Alan Dukes, reiterated this policy in a speech in Tallaght. Opposition support for the government retrenchment became known as to the Tallaght Strategy and it limited opposition to the fiscal contracti ...
... provided they continue his party’s attempt to correct the public finances. FitzGerald’s successor, Alan Dukes, reiterated this policy in a speech in Tallaght. Opposition support for the government retrenchment became known as to the Tallaght Strategy and it limited opposition to the fiscal contracti ...
The euro area fiscal stance - ECB
... to impose disproportionate costs on other EMU participants. 61 The SGP framework guides Member States towards achieving sound fiscal positions and provides room to cushion normal cyclical fluctuations via automatic stabilisers. Member States set medium-term budgetary objectives (MTOs) which are inte ...
... to impose disproportionate costs on other EMU participants. 61 The SGP framework guides Member States towards achieving sound fiscal positions and provides room to cushion normal cyclical fluctuations via automatic stabilisers. Member States set medium-term budgetary objectives (MTOs) which are inte ...
Document
... stipulates that “the criterion on the convergence of interest rates (…) shall mean that, observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than 2 percentage points that of, at most, the three best ...
... stipulates that “the criterion on the convergence of interest rates (…) shall mean that, observed over a period of one year before the examination, a Member State has had an average nominal long-term interest rate that does not exceed by more than 2 percentage points that of, at most, the three best ...
Stability and Growth Pact
The Stability and Growth Pact (SGP) is an agreement, among the 28 Member states of the European Union, to facilitate and maintain the stability of the Economic and Monetary Union (EMU). Based primarily on Articles 121 and 126 of the Treaty on the Functioning of the European Union, it consists of fiscal monitoring of members by the European Commission and the Council of Ministers, and the issuing of a yearly recommendation for policy actions to ensure a full compliance with the SGP also in the medium-term. If a Member State breaches the SGP's outlined maximum limit for government deficit and debt, the surveillance and request for corrective action will intensify through the declaration of an Excessive Deficit Procedure (EDP); and if these corrective actions continue to remain absent after multiple warnings, the Member State can ultimately be issued economic sanctions. The pact was outlined by a resolution and two council regulations in July 1997. The first regulation ""on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies"", known as the ""preventive arm"", entered into force 1 July 1998. The second regulation ""on speeding up and clarifying the implementation of the excessive deficit procedure"", known as the ""dissuasive arm"", entered into force 1 January 1999.The purpose of the pact was to ensure that fiscal discipline would be maintained and enforced in the EMU. All EU member states are automatically members of both the EMU and the SGP, as this is defined by paragraphs in the EU Treaty itself. The fiscal discipline is ensured by the SGP by requiring each Member State, to implement a fiscal policy aiming for the country to stay within the limits on government deficit (3% of GDP) and debt (60% of GDP); and in case of having a debt level above 60% it should each year decline with a satisfactory pace towards a level below. As outlined by the ""preventive arm"" regulation, all EU member states are each year obliged to submit a SGP compliance report for the scrutiny and evaluation of the European Commission and the Council of Ministers, that will present the country's expected fiscal development for the current and subsequent three years. These reports are called ""stability programmes"" for eurozone Member States and ""convergence programmes"" for non-eurozone Member States, but despite having different titles they are identical in regards of the content. After the reform of the SGP in 2005, these programmes have also included the Medium-Term budgetary Objectives (MTO's), being individually calculated for each Member State as the medium-term sustainable average-limit for the country's structural deficit, and the Member State is also obliged to outline the measures it intends to implement to attain its MTO. If the EU Member State does not comply with both the deficit limit and the debt limit, a so-called ""Excessive Deficit Procedure"" (EDP) is initiated along with a deadline to comply, which basically includes and outlines an ""adjustment path towards reaching the MTO"". This procedure is outlined by the ""dissuasive arm"" regulation.The SGP was initially proposed by German finance minister Theo Waigel in the mid-1990s. Germany had long maintained a low-inflation policy, which had been an important part of the German economy's strong performance since the 1950s. The German government hoped to ensure the continuation of that policy through the SGP, which would ensure the prevalence of fiscal responsibility, and limit the ability of governments to exert inflationary pressures on the European economy. As such, it was also described to be a key tool for the Member States adopting the euro, to ensure that they did not only meet the Maastricht convergence criteria at the time of adopting the euro, but kept on to comply with the fiscal criteria for the following years.