Policy Brief - Hans-Böckler
... General Government” and “Social Benefits other than social transfers in kind: General government”, and deflate them using the GDP deflator. These three categories comprise more than 90% of non-interest government expenditure in Greece. Note that we are not able to perform any cyclical adjustment on ...
... General Government” and “Social Benefits other than social transfers in kind: General government”, and deflate them using the GDP deflator. These three categories comprise more than 90% of non-interest government expenditure in Greece. Note that we are not able to perform any cyclical adjustment on ...
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... line with the current EU fiscal rules. With the stimulus, the US structural deficit increased to 10 percent of GDP, similar to Greece, Ireland, Romania, Spain and the United Kingdom. In the case of the UK, which had been under an excessive deficit procedure since 8 July 2008, the Council of the EU o ...
... line with the current EU fiscal rules. With the stimulus, the US structural deficit increased to 10 percent of GDP, similar to Greece, Ireland, Romania, Spain and the United Kingdom. In the case of the UK, which had been under an excessive deficit procedure since 8 July 2008, the Council of the EU o ...
Martin Feldstein Is There a Role for Discretionary Fiscal Policy? Comment
... Japan’s potential and with several years of declining prices. Although the short term interest rate is essentially zero, the real rate is positive and could rise if the rate of deflation increases. The large existing budget deficit (a primary deficit of about 5 percent of GDP) and the excessive nati ...
... Japan’s potential and with several years of declining prices. Although the short term interest rate is essentially zero, the real rate is positive and could rise if the rate of deflation increases. The large existing budget deficit (a primary deficit of about 5 percent of GDP) and the excessive nati ...
The Optimism Bias of Official Fiscal Forecasts in the Eurozone
... for a sample of 31 countries (sample period up to 2012.) 1. Official forecasters are more over-optimistic than private forecasters on average, at the 2-year horizon for budget balances and at the 1- & 2-year horizon for real GDP forecasts. 2. While euro area governments were very reluctant to foreca ...
... for a sample of 31 countries (sample period up to 2012.) 1. Official forecasters are more over-optimistic than private forecasters on average, at the 2-year horizon for budget balances and at the 1- & 2-year horizon for real GDP forecasts. 2. While euro area governments were very reluctant to foreca ...
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... crowd out private investments due to increasing interest rates. Although the balanced budget rule is still widely used, it has to be taken into account that a balanced budget does not necessarily have a neutral impact on the economy, as shown by the balanced budget multiplier theorem. In addition, a ...
... crowd out private investments due to increasing interest rates. Although the balanced budget rule is still widely used, it has to be taken into account that a balanced budget does not necessarily have a neutral impact on the economy, as shown by the balanced budget multiplier theorem. In addition, a ...
The Budget Deficit and the Trade Deficit
... This drew in additional private capital from abroad. If the twin deficits theory is correct, it has an adverse implication for the efficacy of fiscal policy as a stimulus tool. It suggests that in an environment of highly mobile international capital flows the effect of policy induced increases in t ...
... This drew in additional private capital from abroad. If the twin deficits theory is correct, it has an adverse implication for the efficacy of fiscal policy as a stimulus tool. It suggests that in an environment of highly mobile international capital flows the effect of policy induced increases in t ...
Tentative Lessons from Recent Capital Account Crises
... In the IMF’s currency crisis models (“EWS models”), they make only a marginal contribution to predicting crises. They also do not add significantly to models explaining the severity of crises. Fiscal indicators may be better predictors of debt crises, and work is proceeding in the IMF on EWS models ...
... In the IMF’s currency crisis models (“EWS models”), they make only a marginal contribution to predicting crises. They also do not add significantly to models explaining the severity of crises. Fiscal indicators may be better predictors of debt crises, and work is proceeding in the IMF on EWS models ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2007, Volume 22
... policy does or does not af fect (productivity) In particular, not is it un growth purely academic. derlies the recent debate on the European Stability and Growth Pact as well as criticisms against the European Central Bank for allegedly pur suing price stability at the expense of employment In this ...
... policy does or does not af fect (productivity) In particular, not is it un growth purely academic. derlies the recent debate on the European Stability and Growth Pact as well as criticisms against the European Central Bank for allegedly pur suing price stability at the expense of employment In this ...
Statistical Appendix
... the total package. The 2010 revised budget draft envisages a budget deficit higher than projected by the IMF staff. The IMF staff builds in a cushion for a track record of underexecution, the 2010 deficit is likely to be below the announced deficit target. The IMF staff’s overall deficit projection ...
... the total package. The 2010 revised budget draft envisages a budget deficit higher than projected by the IMF staff. The IMF staff builds in a cushion for a track record of underexecution, the 2010 deficit is likely to be below the announced deficit target. The IMF staff’s overall deficit projection ...
Summer Economic Statement
... growth hubs and other parts of the country will help to spread growth more evenly and hence address some of the regional imbalances that have emerged in recent years. Achieving a more equal regional distribution of economic activity is at the core of the Programme for a Partnership Government. Furt ...
... growth hubs and other parts of the country will help to spread growth more evenly and hence address some of the regional imbalances that have emerged in recent years. Achieving a more equal regional distribution of economic activity is at the core of the Programme for a Partnership Government. Furt ...
the fiscal framework in romania – the efficiency of
... debt sustainability by public finances can be achieved in a framework based on rules or one based on discretion. If in the second case, the advantage is represented by flexibility and possibility to respond timely to shocks manifested in an economy, a policy based on rules has the advantage of reduc ...
... debt sustainability by public finances can be achieved in a framework based on rules or one based on discretion. If in the second case, the advantage is represented by flexibility and possibility to respond timely to shocks manifested in an economy, a policy based on rules has the advantage of reduc ...
Mario Draghi: Unemployment in the euro area
... “doing too little” – i.e. that cyclical unemployment becomes structural – outweigh those of “doing too much” – that is, excessive upward wage and price pressures. At the same time, aggregate demand policies will ultimately not be effective without action on the supply side. Advanced economies are op ...
... “doing too little” – i.e. that cyclical unemployment becomes structural – outweigh those of “doing too much” – that is, excessive upward wage and price pressures. At the same time, aggregate demand policies will ultimately not be effective without action on the supply side. Advanced economies are op ...
S/MFM Seminar 2007
... General economic statistics (e.g. GDP, HICP, other price statistics, labour market, other short-term statistics, foreign trade) Other statistics (e.g. agriculture) ...
... General economic statistics (e.g. GDP, HICP, other price statistics, labour market, other short-term statistics, foreign trade) Other statistics (e.g. agriculture) ...
HYPOTHETICAL EVOLVENT OF MACROECONOMIC STABILITY
... Starting from the summer of 2008, the European Union’s economy suffers the recession. The discontent of EU citizens does not allow to implement impartial (although sometimes painful) actions for the recovery of the situation which lasts too long and rises many associated problems. In the latest Euro ...
... Starting from the summer of 2008, the European Union’s economy suffers the recession. The discontent of EU citizens does not allow to implement impartial (although sometimes painful) actions for the recovery of the situation which lasts too long and rises many associated problems. In the latest Euro ...
This chapter provides a broad perspective of the finances of... Government during 2003-04 and analyses critical changes in the major... Chapter 1
... Revenue receipt exceeded the budget estimates by 4.6 per cent and better realisation of non-tax receipts contributed to this performance. Tax receipts as a whole were generally on target. Revenue expenditure was also maintained at the budgeted levels. Improved growth of revenue receipts resulted in ...
... Revenue receipt exceeded the budget estimates by 4.6 per cent and better realisation of non-tax receipts contributed to this performance. Tax receipts as a whole were generally on target. Revenue expenditure was also maintained at the budgeted levels. Improved growth of revenue receipts resulted in ...
2002-5
... (1999; 1998) constructed generational accounts for Australia. Generational accounts are based on the intergenerational budget constraint for the Australian public sector, under which future net tax payments of current and future generations must be sufficient (in present value terms) to cover the go ...
... (1999; 1998) constructed generational accounts for Australia. Generational accounts are based on the intergenerational budget constraint for the Australian public sector, under which future net tax payments of current and future generations must be sufficient (in present value terms) to cover the go ...
Fiscal Rules for Ireland - Irish Fiscal Advisory Council
... tended to suffer from severe deficit bias, as reflected in the secular rise in public debt during much of the past 40 years and throughout much of the industrialized world. Fiscal rules are increasingly seen as an effective institutional means of addressing such bias. A widely accepted definition of ...
... tended to suffer from severe deficit bias, as reflected in the secular rise in public debt during much of the past 40 years and throughout much of the industrialized world. Fiscal rules are increasingly seen as an effective institutional means of addressing such bias. A widely accepted definition of ...
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... months. Despite the slightly weaker assessment of the general economic situation in the latest survey in May, consumer confidence in the euro area is still at an historically high level. In this respect, these positive factors should make a valuable contribution towards ensuring that growth remains ...
... months. Despite the slightly weaker assessment of the general economic situation in the latest survey in May, consumer confidence in the euro area is still at an historically high level. In this respect, these positive factors should make a valuable contribution towards ensuring that growth remains ...
Fiscal Rigor or Rigor Mortis - European Union Center of California
... and Stability Pact fiscal criteria are discussed and possibilities that the operation of the Excessive Deficit Procedures (EDP) of the Stability Pact could actually increase rather than reduce the pressures on the ECB are considered. Section VI concludes. The Need for a Political Economy Perspectiv ...
... and Stability Pact fiscal criteria are discussed and possibilities that the operation of the Excessive Deficit Procedures (EDP) of the Stability Pact could actually increase rather than reduce the pressures on the ECB are considered. Section VI concludes. The Need for a Political Economy Perspectiv ...
CHAPTER V : MANAGEMENT OF FISCAL IMBALANCE : DEFICITS
... comments on the fiscal deficit in this chapter. The fiscal deficit has been worked out on the basis of actual figure of receipt and expenditure (irrespective of outflow of cash) booked in the accounts and figure of fiscal deficit may differ from the figure appeared in earlier Reports. The fiscal def ...
... comments on the fiscal deficit in this chapter. The fiscal deficit has been worked out on the basis of actual figure of receipt and expenditure (irrespective of outflow of cash) booked in the accounts and figure of fiscal deficit may differ from the figure appeared in earlier Reports. The fiscal def ...
This chapter presents a summarised position of government finances Chapter 9 M
... Eight indicators are included under this major component to capture the adequacy of resources, growth of these resources and returns on past investments, financial intermediation and capital expenditure incurred to date. The revenue receipt -GDP ratio indicates the adequacy of the present flow of re ...
... Eight indicators are included under this major component to capture the adequacy of resources, growth of these resources and returns on past investments, financial intermediation and capital expenditure incurred to date. The revenue receipt -GDP ratio indicates the adequacy of the present flow of re ...
Romania on its Way to Euro
... • The sustainability of the government financial position o The budgetary deficit must not exceed 3% of GDP in the year preceding the examination date; if this value is exceeded the budgetary deficit must be substantially and continuously reduced as much as it approaches the reference value; the ref ...
... • The sustainability of the government financial position o The budgetary deficit must not exceed 3% of GDP in the year preceding the examination date; if this value is exceeded the budgetary deficit must be substantially and continuously reduced as much as it approaches the reference value; the ref ...
The Euro Experience: A Review of the Euro Crisis, Policy Issues
... than would otherwise be the case. After joining the Euro zone, countries like Greece, Portugal, Spain and Ireland suddenly could access credit markets nearly limitlessly at lower costs. Capital inflows to those countries were huge between 1999 and 2007 and financed various kinds of aggregate demand, ...
... than would otherwise be the case. After joining the Euro zone, countries like Greece, Portugal, Spain and Ireland suddenly could access credit markets nearly limitlessly at lower costs. Capital inflows to those countries were huge between 1999 and 2007 and financed various kinds of aggregate demand, ...
The Effects of Fiscal Policy on Economic Growth: Empirical
... The Effects of Fiscal Policy on Economic Growth: Empirical Evidences Based on Time Series Data from Pakistan SHAHID ALI and NAVED AHMAD* 1. INTRODUCTION Fiscal policy refers to government‟s efforts to influence the direction of the economy through changes in taxes or expenditures. Optimal fiscal pol ...
... The Effects of Fiscal Policy on Economic Growth: Empirical Evidences Based on Time Series Data from Pakistan SHAHID ALI and NAVED AHMAD* 1. INTRODUCTION Fiscal policy refers to government‟s efforts to influence the direction of the economy through changes in taxes or expenditures. Optimal fiscal pol ...
To view this press release as a file
... the growth rate of expenditures must continue—particularly due to the very low level of civilian public expenditure in Israel compared to other advanced economies (Figure 2)—it will need to base that on more stable sources of revenue in order to avoid a permanent increase in the deficit and a revers ...
... the growth rate of expenditures must continue—particularly due to the very low level of civilian public expenditure in Israel compared to other advanced economies (Figure 2)—it will need to base that on more stable sources of revenue in order to avoid a permanent increase in the deficit and a revers ...
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.