The Euro and the Dollar: Toward a "Finance G-2"?
... Europe, at the national and/or regional levels, thus needed to implement a series of reforms to complement the creation of the euro and to capitalize on its potential for strengthening the region’s growth and international competitiveness. Most of the needed changes are structural, relating to labor ...
... Europe, at the national and/or regional levels, thus needed to implement a series of reforms to complement the creation of the euro and to capitalize on its potential for strengthening the region’s growth and international competitiveness. Most of the needed changes are structural, relating to labor ...
No 15
... It was possible to show that the government resorts chiefly to public investment (Ip) cuts and tax increases to make fiscal adjustments. In doing so, the government was right for public investment on the short run but wrong for tax rates (t). Indeed, the regression analysis showed Ip was positively ...
... It was possible to show that the government resorts chiefly to public investment (Ip) cuts and tax increases to make fiscal adjustments. In doing so, the government was right for public investment on the short run but wrong for tax rates (t). Indeed, the regression analysis showed Ip was positively ...
Fiscal space on the Eurozone periphery: The case of Spain
... sentence from the communication: “those [countries] who do not have fiscal space want to use it; those who have fiscal space do not want to use it” (page 3). The problem here lies in the notion of “fiscal space”, which is not actually defined in economic terms, but exclusively in relation to complyi ...
... sentence from the communication: “those [countries] who do not have fiscal space want to use it; those who have fiscal space do not want to use it” (page 3). The problem here lies in the notion of “fiscal space”, which is not actually defined in economic terms, but exclusively in relation to complyi ...
Fiscal Policy and EMU
... years can shed light on the future evolution of fiscal policy under EMU, given that the previous years are strongly influenced with the conditions set in the Maastricht Treaty where there was an explicit and large punishment associated for those countries that did not meet the criteria. Although the ...
... years can shed light on the future evolution of fiscal policy under EMU, given that the previous years are strongly influenced with the conditions set in the Maastricht Treaty where there was an explicit and large punishment associated for those countries that did not meet the criteria. Although the ...
America`s Fiscal Insolvency and Its Generational
... The U.S. Fiscal Gap The U.S. fiscal gap currently stands at $210 trillion. This figure is my own calculation based on the Congressional Budget Office’s July 2014 75-year Alternative Fiscal Scenario (AFS) projection. Constructing the infinite-horizon fiscal gap from the CBO’s AFS projection takes les ...
... The U.S. Fiscal Gap The U.S. fiscal gap currently stands at $210 trillion. This figure is my own calculation based on the Congressional Budget Office’s July 2014 75-year Alternative Fiscal Scenario (AFS) projection. Constructing the infinite-horizon fiscal gap from the CBO’s AFS projection takes les ...
Fiscal Policy and Economic Growth: Volatility Vs the Levels*
... spending. Barro (1989 and 1991) finds that per capita GDP growth rate and investment-GDP ratio, are negatively correlated to government expenditure as a share of the GDP. Barro (1991) suggested that government consumption induces distortions in the economy and provides no offsetting stimulus to GDP ...
... spending. Barro (1989 and 1991) finds that per capita GDP growth rate and investment-GDP ratio, are negatively correlated to government expenditure as a share of the GDP. Barro (1991) suggested that government consumption induces distortions in the economy and provides no offsetting stimulus to GDP ...
This PDF is a selection from a published volume from... Bureau of Economic Research Volume Title: NBER International Seminar on Macroeconomics
... B 2011 by the National Bureau of Economic Research. All rights reserved. ...
... B 2011 by the National Bureau of Economic Research. All rights reserved. ...
What fiscal policy does Spain need? Macroeconomic effects of two
... This parenthesis in the austerity policy applied by the Spanish authorities might be only temporary. The Stability Programme presented by the Spanish government in April 2016 was focused again on budgetary consolidation. And the European Council declared in August 2016 that Spain had not applied eff ...
... This parenthesis in the austerity policy applied by the Spanish authorities might be only temporary. The Stability Programme presented by the Spanish government in April 2016 was focused again on budgetary consolidation. And the European Council declared in August 2016 that Spain had not applied eff ...
Implementation of the Fiscal Compact in the Euro Area Member States
... European Fiscal Compact in December 2011. Its primary objective is the prevention of future debtrelated crises by imposing on the signatory states the duty to implement budget rules into national legislation. While the Fiscal Compact defines some cornerstones of the budget rule, the precise legal wo ...
... European Fiscal Compact in December 2011. Its primary objective is the prevention of future debtrelated crises by imposing on the signatory states the duty to implement budget rules into national legislation. While the Fiscal Compact defines some cornerstones of the budget rule, the precise legal wo ...
To Bind Or Not To Bind Caribbean Sarosh R. Khan
... tighter and more encompassing fiscal rules are correlated with stronger cyclically adjusted primary balances in European Union countries; ...
... tighter and more encompassing fiscal rules are correlated with stronger cyclically adjusted primary balances in European Union countries; ...
Medium-Term Budget Framework
... – Set of 10 fiscal indicators used to assess impact of institutions on fiscal performance ...
... – Set of 10 fiscal indicators used to assess impact of institutions on fiscal performance ...
NBER WORKING PAPER SERIES FISCAL POLICY AND MONETARY INTEGRATION IN EUROPE Jordi Gali
... satisfactory pace.” As is well known, these two reference values were set at 3 percent and 60 percent, respectively. The first criterion was also used, among other criteria like price stability, when a decision was made on which countries would be admitted to stage III of the EMU (the single currenc ...
... satisfactory pace.” As is well known, these two reference values were set at 3 percent and 60 percent, respectively. The first criterion was also used, among other criteria like price stability, when a decision was made on which countries would be admitted to stage III of the EMU (the single currenc ...
Fiscal Policy and Monetary Integration in Europe
... satisfactory pace.” As is well known, these two reference values were set at 3 percent and 60 percent, respectively. The first criterion was also used, among other criteria like price stability, when a decision was made on which countries would be admitted to stage III of the EMU (the single currenc ...
... satisfactory pace.” As is well known, these two reference values were set at 3 percent and 60 percent, respectively. The first criterion was also used, among other criteria like price stability, when a decision was made on which countries would be admitted to stage III of the EMU (the single currenc ...
D : M F
... result from temporary mismatches in revenue and expenditures of the Union Government, management of which requires accommodation in the nature of ways and means advances. These transient mismatches, largely of a cyclical nature, may at times go beyond an accounting time frame of a year, but there co ...
... result from temporary mismatches in revenue and expenditures of the Union Government, management of which requires accommodation in the nature of ways and means advances. These transient mismatches, largely of a cyclical nature, may at times go beyond an accounting time frame of a year, but there co ...
Driving forces behind recent money and loan dynamics
... has also been influenced by other factors, shifts in money demand being one example. Forces driving developments in loans to households MFI lending to households deflated using the GDP deflator exhibits a significant degree of comovement with real GDP growth with a lead of up to one quarter (see Cha ...
... has also been influenced by other factors, shifts in money demand being one example. Forces driving developments in loans to households MFI lending to households deflated using the GDP deflator exhibits a significant degree of comovement with real GDP growth with a lead of up to one quarter (see Cha ...
NBER WORKING PAPER SERIES FISCAL RULES IN INDIA: ARE THEY EFFECTIVE?
... Act, 2003 (FRBMA) and the associated rules are presented and commented upon. With the very small number of data points at our disposal, no formal estimation-based hypotheses about the efficacy of rules can even be attempted. Therefore, in section 5, the outcomes of the FRBMA over the 5-year period o ...
... Act, 2003 (FRBMA) and the associated rules are presented and commented upon. With the very small number of data points at our disposal, no formal estimation-based hypotheses about the efficacy of rules can even be attempted. Therefore, in section 5, the outcomes of the FRBMA over the 5-year period o ...
2015-07-U-EUIMF - Public Services International Research Unit
... good, in the context of limited economic resources which require planned prioritisation. In post-war Europe, it was applied to programmes where household consumption and income was restricted, often with some form of rationing to equalise the impact, to enable national economic reconstruction to tak ...
... good, in the context of limited economic resources which require planned prioritisation. In post-war Europe, it was applied to programmes where household consumption and income was restricted, often with some form of rationing to equalise the impact, to enable national economic reconstruction to tak ...
Deficit Financing
... 3. Helps in building up infrastructure: the LDCs have very low infrastructure facilities like highways, banks, education etc. a big sum is required by the government in providing such facilities like construction of highways, provision of electricity, water & gas, provision of health facilities. In ...
... 3. Helps in building up infrastructure: the LDCs have very low infrastructure facilities like highways, banks, education etc. a big sum is required by the government in providing such facilities like construction of highways, provision of electricity, water & gas, provision of health facilities. In ...
PDF Download
... to these imbalances. Originally GDP per capita relative to GDP per capita of EA12 countriesa) in 1995 poorer countries such as Estonia, Countries which adopted the euro by 1 January 2001. Source: Eurostat, last accessed 10 December 2012, and EEAG calculations. Spain and Ireland topped the list of in ...
... to these imbalances. Originally GDP per capita relative to GDP per capita of EA12 countriesa) in 1995 poorer countries such as Estonia, Countries which adopted the euro by 1 January 2001. Source: Eurostat, last accessed 10 December 2012, and EEAG calculations. Spain and Ireland topped the list of in ...
Fiscal Policy and external imbalances in a debt
... members of the euro-zone, it seems that some important considerations are neglected in this literature. First, a significant part of the recently accumulated debt in UEM countries that is now being deleveraged is external, not between savers and borrowers of the same closed economy (as in Eggertsson ...
... members of the euro-zone, it seems that some important considerations are neglected in this literature. First, a significant part of the recently accumulated debt in UEM countries that is now being deleveraged is external, not between savers and borrowers of the same closed economy (as in Eggertsson ...
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 ...
The Euro Versus the Dollar: Will there be a Struggle for Dominance?
... diversification into euros—if Euroland countries are able to both overcome their continuing structural impediments and find a way to employ more expansionary macroeconomic policies, e.g., by recognizing that the European Central Bank ought to attach at least secondary importance to output goals and/ ...
... diversification into euros—if Euroland countries are able to both overcome their continuing structural impediments and find a way to employ more expansionary macroeconomic policies, e.g., by recognizing that the European Central Bank ought to attach at least secondary importance to output goals and/ ...
euro area and member states
... Within the euro area, economic policy remains largely the responsibility of the Member States, but national governments must coordinate their respective economic policies in order to attain the common objectives of stability, growth and employment. Coordination is achieved through a number of struct ...
... Within the euro area, economic policy remains largely the responsibility of the Member States, but national governments must coordinate their respective economic policies in order to attain the common objectives of stability, growth and employment. Coordination is achieved through a number of struct ...
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.