automatic fiscal stabilizers vs. discretionary fiscal policy
... unstable and unpredictable fiscal policies have worsened the economic and social system thus reducing the government credibility. According to some researchers, sloppy tax legislation and the arbitrariness of rulings on behalf of the tax administration can reduce drasticly the state’s credibility, b ...
... unstable and unpredictable fiscal policies have worsened the economic and social system thus reducing the government credibility. According to some researchers, sloppy tax legislation and the arbitrariness of rulings on behalf of the tax administration can reduce drasticly the state’s credibility, b ...
Chapter 7 Chile`s New Fiscal Rule
... policies allow automatic stabilizers to work freely during the cycle and help keep any surplus in good times out of reach from the political process in normal discretionary budgetary decisions. In 2000, the government of President Ricardo Lagos introduced a fiscal rule based on a structural surplus ...
... policies allow automatic stabilizers to work freely during the cycle and help keep any surplus in good times out of reach from the political process in normal discretionary budgetary decisions. In 2000, the government of President Ricardo Lagos introduced a fiscal rule based on a structural surplus ...
The Political Economy of the Budget Surplus in the United States
... government has reached a surplus, but that this result is perceived as so "exceptional." In fact, given the strong expansion of the U.S. economy in the last eight years, and the "peace dividend" due to the end of the cold war, nobody should be overly surprised at the much improved fiscal balance. Th ...
... government has reached a surplus, but that this result is perceived as so "exceptional." In fact, given the strong expansion of the U.S. economy in the last eight years, and the "peace dividend" due to the end of the cold war, nobody should be overly surprised at the much improved fiscal balance. Th ...
This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: Fiscal Institutions and Fiscal Performance
... gate expenditure and the associated taxation. This occurs because the expenditure proposed by each agent in the majority can be closely targeted to the group he or she represents, while revenues with their distortionary costs can be spread over a large number of groups. Two key factors determine how ...
... gate expenditure and the associated taxation. This occurs because the expenditure proposed by each agent in the majority can be closely targeted to the group he or she represents, while revenues with their distortionary costs can be spread over a large number of groups. Two key factors determine how ...
Working Paper No. 385 Macroeconomic Policies of the Economic
... The ECB is set up to be independent of the European Union (EU) Council and Parliament and of its member governments. There is, thus, a complete separation between the monetary authorities, in the form of the ECB, and the fiscal authorities, in the shape of the national governments comprising the EMU ...
... The ECB is set up to be independent of the European Union (EU) Council and Parliament and of its member governments. There is, thus, a complete separation between the monetary authorities, in the form of the ECB, and the fiscal authorities, in the shape of the national governments comprising the EMU ...
iv. the size and role of automatic fiscal stabilisers
... Several cases have been reported where such policy responses helped to reverse increases in long-term interest rates and contributed to a brisk recovery, notably in Finland, Denmark, Ireland and Sweden.6 Second, the model simulations may also understate the extent of “nonKeynesian” responses to fisc ...
... Several cases have been reported where such policy responses helped to reverse increases in long-term interest rates and contributed to a brisk recovery, notably in Finland, Denmark, Ireland and Sweden.6 Second, the model simulations may also understate the extent of “nonKeynesian” responses to fisc ...
Chile`s new fiscal rule
... policies allow automatic stabilizers to work freely during the cycle and help keep any surplus in good times out of reach from the political process in normal discretionary budgetary decisions. In 2000, the government of President Ricardo Lagos introduced a fiscal rule based on a structural surplus ...
... policies allow automatic stabilizers to work freely during the cycle and help keep any surplus in good times out of reach from the political process in normal discretionary budgetary decisions. In 2000, the government of President Ricardo Lagos introduced a fiscal rule based on a structural surplus ...
FISCAL POLICY IN SWEDEN
... transfers to the household sector by 0.70 per cent of GDP. This is a large effect, almost double as high as is assumed in section 3.2. However, it is not unreasonably high. The effect is estimated there as the actual unemployment benefit for an unemployed person. However, it is probable that other t ...
... transfers to the household sector by 0.70 per cent of GDP. This is a large effect, almost double as high as is assumed in section 3.2. However, it is not unreasonably high. The effect is estimated there as the actual unemployment benefit for an unemployed person. However, it is probable that other t ...
A TWIN DEFICIT - THE ISSUE OF THE SERBIAN ECONOMY
... aim was to avoid a complete economic collapse and mitigate the effects of the crisis to a certain extent. However, it is only a delay in resolving the problem for a future period of time, in which it is necessary that these large deficits should somehow be financed. The worse off are the countries w ...
... aim was to avoid a complete economic collapse and mitigate the effects of the crisis to a certain extent. However, it is only a delay in resolving the problem for a future period of time, in which it is necessary that these large deficits should somehow be financed. The worse off are the countries w ...
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... out from other EU countries thanks to its strong public finances. At the trough of the recession in 2009 Sweden had the smallest fiscal deficit of all EU countries: only 0.9 percent of GDP. In 2011 there was even a (small) fiscal surplus. Sweden is one of the three member states that have never viol ...
... out from other EU countries thanks to its strong public finances. At the trough of the recession in 2009 Sweden had the smallest fiscal deficit of all EU countries: only 0.9 percent of GDP. In 2011 there was even a (small) fiscal surplus. Sweden is one of the three member states that have never viol ...
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... predicted values for 2005 and 2006 are based on the European Commission’s (EC) forecasts that are based, in turn, on fiscal plans submitted by member states. Data used in this paper are based on autumn 2004 governments’ fiscal notifications and therefore for year 2004 present expected values and fo ...
... predicted values for 2005 and 2006 are based on the European Commission’s (EC) forecasts that are based, in turn, on fiscal plans submitted by member states. Data used in this paper are based on autumn 2004 governments’ fiscal notifications and therefore for year 2004 present expected values and fo ...
Problems with Current EMU Arrangements
... deficit to a maximum of 3 per cent of GDP is relevant for all countries? Countries will differ in the extent to which their GDP varies in the course of a business cycle and in the extent to which the budget position is sensitive to the business cycle. Department of Land Economy ...
... deficit to a maximum of 3 per cent of GDP is relevant for all countries? Countries will differ in the extent to which their GDP varies in the course of a business cycle and in the extent to which the budget position is sensitive to the business cycle. Department of Land Economy ...
Economic Growth in Denmark, Sweden and the United
... policy of each of the three countries. High spending on research and development, particularly in information and communications technology, is identified as the main force driving growth in Sweden while a robust increase in private consumption resulting from rising asset prices is found to have bee ...
... policy of each of the three countries. High spending on research and development, particularly in information and communications technology, is identified as the main force driving growth in Sweden while a robust increase in private consumption resulting from rising asset prices is found to have bee ...
how to deal with macroeconomic imbalances?
... a breakdown but also the only one that can really enforce the adjustment. The ECB has an interest in seeing the maximum adjustment effort at the national level in order to limit its own exposure to risk and to re-establish financial stability as quickly as possible. By contrast, the national authori ...
... a breakdown but also the only one that can really enforce the adjustment. The ECB has an interest in seeing the maximum adjustment effort at the national level in order to limit its own exposure to risk and to re-establish financial stability as quickly as possible. By contrast, the national authori ...
The Cyclically Adjusted Budget: History and Exegesis of a Fateful
... budget, Myrdal, in the 1930s, saw public investments simply as a line of defense against cyclical fluctuations, to be activated only when the circumstances required them. In fact, he thought that the government had to “[...] take precautions in order to avoid delay in setting the spending program i ...
... budget, Myrdal, in the 1930s, saw public investments simply as a line of defense against cyclical fluctuations, to be activated only when the circumstances required them. In fact, he thought that the government had to “[...] take precautions in order to avoid delay in setting the spending program i ...
NBER WORKING PAPER SERIES ITS IMPLICATIONS Jeffrey A. Frankel
... failure to run surpluses during periods of high output: if a boom is forecasted to last indefinitely, retrenchment is treated as unnecessary. Many believe that better fiscal policy can be obtained by means of rules such as ceilings for the deficit or, better yet, the structural deficit. But we also ...
... failure to run surpluses during periods of high output: if a boom is forecasted to last indefinitely, retrenchment is treated as unnecessary. Many believe that better fiscal policy can be obtained by means of rules such as ceilings for the deficit or, better yet, the structural deficit. But we also ...
03/RT/2015 The macroeconomic effects of the Euro Area`s fiscal
... agents. If agents believe the measures to be permanent, the consolidation might even have been expansionary due to strong riccardian effects. However, it is plausible to assume that households and firms did not expect the measures to permanent, and have a finite horizon due to some degree of myopia. ...
... agents. If agents believe the measures to be permanent, the consolidation might even have been expansionary due to strong riccardian effects. However, it is plausible to assume that households and firms did not expect the measures to permanent, and have a finite horizon due to some degree of myopia. ...
Fiscal Cyclicality and EMU* Agustin S. Benetrix, IIIS, Trinity College Dublin
... cyclical behaviour of fiscal policy for each member of the euro area in the 1970-2007 period. In an alternative specification, these authors also estimate the effect of the Maastricht Treaty on fiscal cyclicality. However, they do not run regressions in which the impact of both the Maastricht Treaty ...
... cyclical behaviour of fiscal policy for each member of the euro area in the 1970-2007 period. In an alternative specification, these authors also estimate the effect of the Maastricht Treaty on fiscal cyclicality. However, they do not run regressions in which the impact of both the Maastricht Treaty ...
the full text
... In an effort to deal with the decaying economy, the IMF/World Bank sponsored Economic Recovery and Structural Adjustment Programs were launched in 1983. The fiscal stabilization and consolidation process that ensued ensured tax collection improved and with significant donor support, government spend ...
... In an effort to deal with the decaying economy, the IMF/World Bank sponsored Economic Recovery and Structural Adjustment Programs were launched in 1983. The fiscal stabilization and consolidation process that ensued ensured tax collection improved and with significant donor support, government spend ...
is the fiscal policy of the czech republic pro-cyclical?
... policies in our analysis. When the economy works at its potential (the grey area around the vertical axis), the substantial changes of structural primary balance do not tell us anything about the cyclicity of the fiscal policy. The grey area around the horizontal axis then describes the situations wh ...
... policies in our analysis. When the economy works at its potential (the grey area around the vertical axis), the substantial changes of structural primary balance do not tell us anything about the cyclicity of the fiscal policy. The grey area around the horizontal axis then describes the situations wh ...
Electoral Cycles and Fiscal Policy in India
... debt that is important for both growth and macroeconomic cycles. We focus on the role of political factors in this time series macro framework covering for the econometric exercises, the period from 1950-51 to 2005-06. The first general elections were conducted in India in 1951, for 489 constituenci ...
... debt that is important for both growth and macroeconomic cycles. We focus on the role of political factors in this time series macro framework covering for the econometric exercises, the period from 1950-51 to 2005-06. The first general elections were conducted in India in 1951, for 489 constituenci ...
A safer and more prosperous Economic and Monetary Union
... of the Economic and Monetary Union rarely lands the every Member State invest in competitiveness. The flexifront page — though it should. After all, how our EMU bility of labour markets is an important aspect of both functions influences the daily life of every citizen and re- increasing and retaini ...
... of the Economic and Monetary Union rarely lands the every Member State invest in competitiveness. The flexifront page — though it should. After all, how our EMU bility of labour markets is an important aspect of both functions influences the daily life of every citizen and re- increasing and retaini ...
Introduction
... more it benefits from the EU budget. Accordingly, this theory later will be referred to as the theory of economic needs. However, as will be later shown, there are major deviations from this basic rule. Some countries clearly benefit more from fiscal transfers than their levels of economic affluence ...
... more it benefits from the EU budget. Accordingly, this theory later will be referred to as the theory of economic needs. However, as will be later shown, there are major deviations from this basic rule. Some countries clearly benefit more from fiscal transfers than their levels of economic affluence ...
From CAB to CAAB
... Julia Lendvai Laurent Moulin Alessandro Turrini DG ECFIN, European Commission ...
... Julia Lendvai Laurent Moulin Alessandro Turrini DG ECFIN, European Commission ...
Is the unobserved/illegal economy included in gross domestic
... Do exports and imports of the European Union include trade between Member States? National Accounts figures, in contrast to foreign trade statistics, are currently not consolidated for intra-EU trade. This means that exports and imports of the EU (the euro area) are increased by trade within the EU ...
... Do exports and imports of the European Union include trade between Member States? National Accounts figures, in contrast to foreign trade statistics, are currently not consolidated for intra-EU trade. This means that exports and imports of the EU (the euro area) are increased by trade within the EU ...
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.