What determines fiscal balances?
... The empirical outcomes suggest that changes in fiscal balances are shaped by the fiscal starting position (last year’s change in the debt ratio), macroeconomic conditions, interest rates, the election cycle, EMU-entry and asset price developments. The positive relation between budget changes and la ...
... The empirical outcomes suggest that changes in fiscal balances are shaped by the fiscal starting position (last year’s change in the debt ratio), macroeconomic conditions, interest rates, the election cycle, EMU-entry and asset price developments. The positive relation between budget changes and la ...
Is Fiscal Policy Contracyclical in India?
... The paper empirically examines the validity of Keynesian philosophy of contracyclical variation in fiscal policy to the macroeconomic activity in India. The macroeconomic activity is proxied by ‘output gap’ a concept defined to estimate the index of economic activity. Applying Johansen’s Full Inform ...
... The paper empirically examines the validity of Keynesian philosophy of contracyclical variation in fiscal policy to the macroeconomic activity in India. The macroeconomic activity is proxied by ‘output gap’ a concept defined to estimate the index of economic activity. Applying Johansen’s Full Inform ...
Greek government deficit and debt figures: revision April
... The following is a summary of the various findings listed in Eurostat’s 2010 report on the revisions of Greek Debt and Deficit figures, 2005-2009. “On 2 and 21 October 2009, the Greek authorities transmitted two different sets of complete Excessive Deficit Procedure (EDP) notification tables to Euro ...
... The following is a summary of the various findings listed in Eurostat’s 2010 report on the revisions of Greek Debt and Deficit figures, 2005-2009. “On 2 and 21 October 2009, the Greek authorities transmitted two different sets of complete Excessive Deficit Procedure (EDP) notification tables to Euro ...
Member States whose 2017 Draft Budgetary Plans were assessed
... In addition to the opinions on the DBPs, the COM has published related Staff Working Documents, which include more details as regards the methodology used. For further information on the rules of the SGP, see SGP Vademecum of March 2017. The main legal provisions relating to the implementation of th ...
... In addition to the opinions on the DBPs, the COM has published related Staff Working Documents, which include more details as regards the methodology used. For further information on the rules of the SGP, see SGP Vademecum of March 2017. The main legal provisions relating to the implementation of th ...
The Risk Octagon: A Comprehensive Framework for Assessing
... Within advanced economies, however, three groups of countries are now emerging. First, you have those where the deterioration in the fiscal accounts is leading to major market pressures. These countries, primarily in Europe, are now tightening fiscal policies, with upfront adjustments, namely and ad ...
... Within advanced economies, however, three groups of countries are now emerging. First, you have those where the deterioration in the fiscal accounts is leading to major market pressures. These countries, primarily in Europe, are now tightening fiscal policies, with upfront adjustments, namely and ad ...
EU Enlargement: Challenges of Integrating Accession Countries
... percent of GDP, and overall public debt not higher than 60 percent of GDP. The SGP, alongside the Maastricht Treaty, creates three rules for economic policy. The three rules are that (1) the ECB is granted independence from political influence; (2) monetary financing of government deficits is prohib ...
... percent of GDP, and overall public debt not higher than 60 percent of GDP. The SGP, alongside the Maastricht Treaty, creates three rules for economic policy. The three rules are that (1) the ECB is granted independence from political influence; (2) monetary financing of government deficits is prohib ...
public - Europa.eu
... The EDP decision tree sets out the systematic sequencing for the implementation of the methodology for assessing effective action, which plays a central role in different phases of the EDP. The process, which is described in Graph 1, reads as follows. If the Member State concerned is compliant with ...
... The EDP decision tree sets out the systematic sequencing for the implementation of the methodology for assessing effective action, which plays a central role in different phases of the EDP. The process, which is described in Graph 1, reads as follows. If the Member State concerned is compliant with ...
Current challenges for Europe
... in the euro area are slower to reflect changes in economic conditions. This means that inflationary pressure has a slower impact on price dynamics. Adjustment to macroeconomic shocks initially tends to have an effect above all on employment and economic activity, only impacting on prices later. It f ...
... in the euro area are slower to reflect changes in economic conditions. This means that inflationary pressure has a slower impact on price dynamics. Adjustment to macroeconomic shocks initially tends to have an effect above all on employment and economic activity, only impacting on prices later. It f ...
Assessing long-term fiscal dynamics: Evidence from Greece and Belgium:
... annual data from 1971-2010, we examine the responsiveness and persistence of government expenditure and revenue in order to infer about the sources of fiscal behaviour. Empirical findings suggest that (i) in Greece, contrary to Belgium, government expenditures and revenues are not affected by polici ...
... annual data from 1971-2010, we examine the responsiveness and persistence of government expenditure and revenue in order to infer about the sources of fiscal behaviour. Empirical findings suggest that (i) in Greece, contrary to Belgium, government expenditures and revenues are not affected by polici ...
70031054I_en.pdf
... usually a complex matter in practice, but failing to do so may be even more harmful. What is involved is the creation, through explicit mechanisms, of the spaces necessary for the full operation of the automatic fiscal stabilizers. When short-term fiscal balance goals are fixed, both the national au ...
... usually a complex matter in practice, but failing to do so may be even more harmful. What is involved is the creation, through explicit mechanisms, of the spaces necessary for the full operation of the automatic fiscal stabilizers. When short-term fiscal balance goals are fixed, both the national au ...
An Analysis of the Fiscal Stance of the New Zealand Government
... After the nominal structural and inflation adjusted structural budget imbalances have been calculated the relation of the Government’s fiscal stance to the rest of the economy can be modelled. In doing so it is possible to determine if the inflation adjusted structural budget imbalance has a greater ...
... After the nominal structural and inflation adjusted structural budget imbalances have been calculated the relation of the Government’s fiscal stance to the rest of the economy can be modelled. In doing so it is possible to determine if the inflation adjusted structural budget imbalance has a greater ...
Fiscal Consolidation - Does it deliver?
... consolidation efforts is to examine the improvement in the estimated structural balance.3 This measure, now at the centre of EU fiscal surveillance and embodied in the Fiscal Compact, strips contributions from cyclical (factors owing to the economic cyclical) and temporary factors from the headline ...
... consolidation efforts is to examine the improvement in the estimated structural balance.3 This measure, now at the centre of EU fiscal surveillance and embodied in the Fiscal Compact, strips contributions from cyclical (factors owing to the economic cyclical) and temporary factors from the headline ...
Slide 1
... `Price stability is defined as a year-on-year increase in the HarmonizedIndex of Consumer Prices (HICP) for the euro area of below 2%. Price stability is to be maintained over the medium term´ `The governing council agreed that in the pursuit of price stability it will aim to maintain inflation rate ...
... `Price stability is defined as a year-on-year increase in the HarmonizedIndex of Consumer Prices (HICP) for the euro area of below 2%. Price stability is to be maintained over the medium term´ `The governing council agreed that in the pursuit of price stability it will aim to maintain inflation rate ...
Effects of Discretionary Fiscal Policy in Tunisia
... fluctuations are, essentially, owed to disequilibrium of markets and not to changes of factors fundamental as the productivity. Others approach affirm that in general discretionary fiscal policy either are ineffective, or deteriorate the situation, because they are taken at unfavorable moments or cr ...
... fluctuations are, essentially, owed to disequilibrium of markets and not to changes of factors fundamental as the productivity. Others approach affirm that in general discretionary fiscal policy either are ineffective, or deteriorate the situation, because they are taken at unfavorable moments or cr ...
Sustainable Future Fiscal and Debt Policies
... Lesson 4: During expansions fiscal policy must be enough tight to correct macroeconomic imbalances Lesson 5: Fiscal policy must not only take into account macroeconomic imbalances but also financial imbalances Lesson 6: Fiscal and monetary policies must be properly coordinated Lesson 7: An expansion ...
... Lesson 4: During expansions fiscal policy must be enough tight to correct macroeconomic imbalances Lesson 5: Fiscal policy must not only take into account macroeconomic imbalances but also financial imbalances Lesson 6: Fiscal and monetary policies must be properly coordinated Lesson 7: An expansion ...
Economic Watch - BBVA Research
... How robust are these results? In response to a criticism from Giles (2012a and b), Blanchard and Leigh conducted various robustness checks. First, they excluded Germany and Greece from the sample. Although the estimated coefficient declined by almost 30%, to 0.776 - which is the same as an implicit ...
... How robust are these results? In response to a criticism from Giles (2012a and b), Blanchard and Leigh conducted various robustness checks. First, they excluded Germany and Greece from the sample. Although the estimated coefficient declined by almost 30%, to 0.776 - which is the same as an implicit ...
Presentation to the Western Cape Provincial Legislature
... • Commission notes implementation of S216(2) – Supports punitive measures for maladministration and resource wastage with individual accountability – Should form last resort of action – Need to emphasise S154 • Initial support and remedial efforts need to be made explicit FFC Submission on the 2012 ...
... • Commission notes implementation of S216(2) – Supports punitive measures for maladministration and resource wastage with individual accountability – Should form last resort of action – Need to emphasise S154 • Initial support and remedial efforts need to be made explicit FFC Submission on the 2012 ...
M G F :
... the short term, the targets relating to revenue deficit were rescheduled for its elimination by 2009-10, while those relating to fiscal deficit were set to be achieved as per the mandate in the Act. 10.8 The ratio of revenue deficit to fiscal deficit increased from an average of 46.26 per cent durin ...
... the short term, the targets relating to revenue deficit were rescheduled for its elimination by 2009-10, while those relating to fiscal deficit were set to be achieved as per the mandate in the Act. 10.8 The ratio of revenue deficit to fiscal deficit increased from an average of 46.26 per cent durin ...
When does it pay to tax? Evidence from state
... Apart from a generic interest in the euro area, looking at a currency union has one important practical advantage. As noted, for example, in Guajardo et al (2011) differences in the estimated effects of taxation and government spending could arise due to the conduct of monetary policy. While this ma ...
... Apart from a generic interest in the euro area, looking at a currency union has one important practical advantage. As noted, for example, in Guajardo et al (2011) differences in the estimated effects of taxation and government spending could arise due to the conduct of monetary policy. While this ma ...
Fiscal consolidation and macroeconomic challenges in Brazil
... macroprudential, and credit policies. Fiscal policy proved to be outstanding in tackling the urgent challenges that arose following the financial bump, attenuating the depth of the crisis and ensuring the resilience of the financial system. Indeed, governments of many developed countries2 have used ...
... macroprudential, and credit policies. Fiscal policy proved to be outstanding in tackling the urgent challenges that arose following the financial bump, attenuating the depth of the crisis and ensuring the resilience of the financial system. Indeed, governments of many developed countries2 have used ...
Perverse Fiscal Consolidation by D. Mario Nuti Sapienza University
... “... our results should not be construed as arguing for any specific fiscal policy stance in any specific country. In particular, the results do not imply that fiscal consolidation is undesirable.” And Cottarelli and Jaramillo (2012) make a case against abrupt, frontloaded and simultaneous fiscal co ...
... “... our results should not be construed as arguing for any specific fiscal policy stance in any specific country. In particular, the results do not imply that fiscal consolidation is undesirable.” And Cottarelli and Jaramillo (2012) make a case against abrupt, frontloaded and simultaneous fiscal co ...
In the next section we describe recent economic developments
... this loss depends on how well individual countries were conducting monetary policy prior to joining the currency union. But in order to reap the maximum benefits and minimize costs, there ought to be a sufficient degree of macro-economic convergence, and financial integration among the aspiring econ ...
... this loss depends on how well individual countries were conducting monetary policy prior to joining the currency union. But in order to reap the maximum benefits and minimize costs, there ought to be a sufficient degree of macro-economic convergence, and financial integration among the aspiring econ ...
M G F :
... The ratios of deficits to GDP and the ratio of revenue deficit to the fiscal deficit indicate vulnerability of Union finances. Finances become vulnerable to the extent that fiscal deficit is not used for creating assets, as there is no addition to the repayment capacity and no asset back up for the ...
... The ratios of deficits to GDP and the ratio of revenue deficit to the fiscal deficit indicate vulnerability of Union finances. Finances become vulnerable to the extent that fiscal deficit is not used for creating assets, as there is no addition to the repayment capacity and no asset back up for the ...
original article in English
... to finance public debt. After recording an 11.2% GDP deficit in 2009, meaning that 27 of every 100 euros of expenditure were financed through public debt, seven years later this number was reduced to 4.3% of GDP. Nevertheless, almost 11 of every 100 euros of public spending are still financed throug ...
... to finance public debt. After recording an 11.2% GDP deficit in 2009, meaning that 27 of every 100 euros of expenditure were financed through public debt, seven years later this number was reduced to 4.3% of GDP. Nevertheless, almost 11 of every 100 euros of public spending are still financed throug ...
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.