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Chapter 15 Deficit and Debt 2 It is the Flow
... A surplus is an excess of revenues over payments In the short run, if the economy is below potential, deficits are good because deficits increase expenditures moving output closer to potential Long-run surpluses are good because they provide ...
... A surplus is an excess of revenues over payments In the short run, if the economy is below potential, deficits are good because deficits increase expenditures moving output closer to potential Long-run surpluses are good because they provide ...
We warned in November - Lombard Street Research
... prompt a material acceleration in GDP. But significant budgetary risks remain. Congress faces another debt-ceiling showdown in early 2014 and if recent experience is repeated, this could lead to further budget cuts. Moreover, the recent ‘sequestration’ in public spending has yet to show up in GDP da ...
... prompt a material acceleration in GDP. But significant budgetary risks remain. Congress faces another debt-ceiling showdown in early 2014 and if recent experience is repeated, this could lead to further budget cuts. Moreover, the recent ‘sequestration’ in public spending has yet to show up in GDP da ...
External Surveillance of Irish Fiscal Policy During the Boom
... France, Italy, Austria and Portugal amongst them – failed to register a single budget surplus in this period, and the aggregate position of the EU as a whole is that a surplus was recorded in only one year (2000). By the same token, Ireland’s performance looks impressive when evaluated in terms of ...
... France, Italy, Austria and Portugal amongst them – failed to register a single budget surplus in this period, and the aggregate position of the EU as a whole is that a surplus was recorded in only one year (2000). By the same token, Ireland’s performance looks impressive when evaluated in terms of ...
Fiscal policy considerations in the design of monetary policy
... During the last ten years, average annual GDP growth in Peru has been 6.3%, reflecting, among other things, the increase of export commodity prices (see Figure 1 and 2), which on average grew 14% per year. The impact on revenues from the export boom has been significant, with tax revenues growing fr ...
... During the last ten years, average annual GDP growth in Peru has been 6.3%, reflecting, among other things, the increase of export commodity prices (see Figure 1 and 2), which on average grew 14% per year. The impact on revenues from the export boom has been significant, with tax revenues growing fr ...
FRBSF L CONOMIC
... percentage points per year if sequestration spending cuts were reversed. By contrast, our calculation of the historical-norm deficit decline through 2015 is 0.4 percentage point per year based on the CBO’s output gap projections. This implies that the excess drag from the rapidly shrinking deficit w ...
... percentage points per year if sequestration spending cuts were reversed. By contrast, our calculation of the historical-norm deficit decline through 2015 is 0.4 percentage point per year based on the CBO’s output gap projections. This implies that the excess drag from the rapidly shrinking deficit w ...
The Gulf CurrenCy - Lancaster University
... had already been in poor shape for years before it joined the euro, but its penalty for lax fiscal behaviour was a depreciating currency and a corresponding currency risk premium on its debts. When it joined in 2001 (reporting falsely optimistic figures for its budget deficit), it was rewarded with ...
... had already been in poor shape for years before it joined the euro, but its penalty for lax fiscal behaviour was a depreciating currency and a corresponding currency risk premium on its debts. When it joined in 2001 (reporting falsely optimistic figures for its budget deficit), it was rewarded with ...
DEFICITS: MANAGEMENT OF FISCAL IMBALANCES
... mismatches between receipts and outflows. More important are the structural imbalances. Actual fiscal deficit may also have cyclical components that are expected to even out over a period. Structural imbalances, however, are more difficult to overcome as they arise from structural features driving r ...
... mismatches between receipts and outflows. More important are the structural imbalances. Actual fiscal deficit may also have cyclical components that are expected to even out over a period. Structural imbalances, however, are more difficult to overcome as they arise from structural features driving r ...
Achim Truger, Henner Will, The German `debt-brake` - a
... look in greater depth at two key aspects of it: Firstly the problem of intransparency and openness to manipulation of the notion of a structural deficit and secondly that of an inherent tendency towards pro-cyclical fiscal policies. Assuming that financial markets are even partly rational in economi ...
... look in greater depth at two key aspects of it: Firstly the problem of intransparency and openness to manipulation of the notion of a structural deficit and secondly that of an inherent tendency towards pro-cyclical fiscal policies. Assuming that financial markets are even partly rational in economi ...
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... better collaboration among G7 and G20 countries. Most bank deposits were insured, preventing runs on banks. Many individuals depended on pensions and on other fixed incomes (for example, salaries from public employment) that were not, or were not much affected, by the downturn in the economy. Furthe ...
... better collaboration among G7 and G20 countries. Most bank deposits were insured, preventing runs on banks. Many individuals depended on pensions and on other fixed incomes (for example, salaries from public employment) that were not, or were not much affected, by the downturn in the economy. Furthe ...
Examining Eurozone Divergence - Sound Ideas
... sufficient enough to ensure healthy convergence among member states. This assumption would later prove to be entirely wishful thinking. The first years of the EMU produced positive overall results. GDP growth was consistent, although not as high as other areas such as the US. Overall unemployment un ...
... sufficient enough to ensure healthy convergence among member states. This assumption would later prove to be entirely wishful thinking. The first years of the EMU produced positive overall results. GDP growth was consistent, although not as high as other areas such as the US. Overall unemployment un ...
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... target for 2011 are only partly specified and there are no measures specified for 2012. In addition, the slightly favourable macroeconomic assumptions combined with an average annual fiscal effort that is somewhat below the 0.75% of GDP recommended by the Council, pose further downward risks to the ...
... target for 2011 are only partly specified and there are no measures specified for 2012. In addition, the slightly favourable macroeconomic assumptions combined with an average annual fiscal effort that is somewhat below the 0.75% of GDP recommended by the Council, pose further downward risks to the ...
Financial, Fiscal and Real Economic
... (cf. EC 2009). In its 2011 report on Public Finances in EMU (EC 2011), the EC presents four possible approaches: (1) a model that investigates the potential impact of the balance situation of banks on public finances based on a value-at-risk analysis; (2) an early warning tool which determines thre ...
... (cf. EC 2009). In its 2011 report on Public Finances in EMU (EC 2011), the EC presents four possible approaches: (1) a model that investigates the potential impact of the balance situation of banks on public finances based on a value-at-risk analysis; (2) an early warning tool which determines thre ...
Slide 1
... Kingdom (85.7%), Germany (81.2%), Hungary (80.6%), Austria (72.2%), Malta (72.0%), Cyprus (71.6%), Spain (68.5%) and the Netherlands (65.2%). ...
... Kingdom (85.7%), Germany (81.2%), Hungary (80.6%), Austria (72.2%), Malta (72.0%), Cyprus (71.6%), Spain (68.5%) and the Netherlands (65.2%). ...
English - Europeanrights.eu
... regard to Article 9 TFEU, Article 151 TFEU and Article 153 TFEU, but also more generally with regard to Article 329 TFEU; whereas greater social convergence can therefore be attained without Treaty change and without prejudice to the subsidiarity principle; W. whereas the European Stability Mechanis ...
... regard to Article 9 TFEU, Article 151 TFEU and Article 153 TFEU, but also more generally with regard to Article 329 TFEU; whereas greater social convergence can therefore be attained without Treaty change and without prejudice to the subsidiarity principle; W. whereas the European Stability Mechanis ...
Policy brief
... It seems hard to argue in favor of the expansionary effects of fiscal austerity these days. Evidence suggests that its ability to stimulate private expenditures is, at best, very low.3 For an economy that is in a financial trap like Argentina was in the late 1990s, this argument is even harder to su ...
... It seems hard to argue in favor of the expansionary effects of fiscal austerity these days. Evidence suggests that its ability to stimulate private expenditures is, at best, very low.3 For an economy that is in a financial trap like Argentina was in the late 1990s, this argument is even harder to su ...
FISCAL MULTIPLIER: IMF AND EC/ECFIN OPINIONS
... return to their pre-crisis levels. Nevertheless, it seems safe for the time being, when thinking about fiscal consolidation, to assume higher multipliers than before the crisis. Finally, it is worth emphasizing that deciding on the appropriate stance of fiscal policy requires much more than an asse ...
... return to their pre-crisis levels. Nevertheless, it seems safe for the time being, when thinking about fiscal consolidation, to assume higher multipliers than before the crisis. Finally, it is worth emphasizing that deciding on the appropriate stance of fiscal policy requires much more than an asse ...
Do all roads lead to fiscal union? Options for deeper
... Fiscal policy coordination within the eurozone is mainly confined to a package of budgetary rules. Recently, the Stability and Growth Pact was supplemented with the Fiscal Compact, which prescribes automatic correction mechanisms for deficits and the introduction of national debt rules. For monitori ...
... Fiscal policy coordination within the eurozone is mainly confined to a package of budgetary rules. Recently, the Stability and Growth Pact was supplemented with the Fiscal Compact, which prescribes automatic correction mechanisms for deficits and the introduction of national debt rules. For monitori ...
The after tax net cash flow vector associated with field f is
... Three observations can be made based on the results. First, a recently proposed reform to a revenue-sharing regime as opposed to profit sharing (R Factor) arguably represents a preference for simplicity in fiscal design. Simplicity trade-offs with neutrality (influencing investment decisions away fo ...
... Three observations can be made based on the results. First, a recently proposed reform to a revenue-sharing regime as opposed to profit sharing (R Factor) arguably represents a preference for simplicity in fiscal design. Simplicity trade-offs with neutrality (influencing investment decisions away fo ...
Thailand Economic Update
... The opening up of Myanmar is the missing piece that completes the Greater Mekong Sub-region as an economic zone from the South China Sea to Andaman Sea. 250mn new consumers and workers with rich natural resources to back them. Dawei (Tavoy) is like Map Ta Phut, only 8-10 times larger. But in ...
... The opening up of Myanmar is the missing piece that completes the Greater Mekong Sub-region as an economic zone from the South China Sea to Andaman Sea. 250mn new consumers and workers with rich natural resources to back them. Dawei (Tavoy) is like Map Ta Phut, only 8-10 times larger. But in ...
commission opinion
... on the existence of an excessive deficit in the United KingdomGENERAL CONSIDERATIONS 1. Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure that Member States avoid excessive government deficits or that they correct such deficits when they occur. The EDP is further spe ...
... on the existence of an excessive deficit in the United KingdomGENERAL CONSIDERATIONS 1. Article 104 of the Treaty lays down an excessive deficit procedure (EDP) to ensure that Member States avoid excessive government deficits or that they correct such deficits when they occur. The EDP is further spe ...
Fiscal Divergence and Business Cycle Synchronization
... However, the IV estimates (in absolute terms) are about 4-times larger. Our question: Can endogeneity explain this large discrepancy between OLS and IV estimates? ...
... However, the IV estimates (in absolute terms) are about 4-times larger. Our question: Can endogeneity explain this large discrepancy between OLS and IV estimates? ...
Impact of the Global Crisis on Emerging Economies
... Much emphasis has been placed on fiscal stimulus to counter effects of global financial crisis But many EMs face stricter constraints on their fiscal space than advanced economies: ...
... Much emphasis has been placed on fiscal stimulus to counter effects of global financial crisis But many EMs face stricter constraints on their fiscal space than advanced economies: ...
Documento de Trabajo/Working Paper Serie Economía
... previous year) for the Eurozone-17 and for Portugal, Ireland, Italy, Greece and Spain (the PIIGS). In 2000 the government deficit and the government debt of Eurozone-17 were 0.1 and 69.2 respectively. In that year Portugal, Italy, Greece and Spain exhibit higher values for deficit and debt, while I ...
... previous year) for the Eurozone-17 and for Portugal, Ireland, Italy, Greece and Spain (the PIIGS). In 2000 the government deficit and the government debt of Eurozone-17 were 0.1 and 69.2 respectively. In that year Portugal, Italy, Greece and Spain exhibit higher values for deficit and debt, while I ...
d1-am_-_session_2_-_ioana_burla_romania
... gradual decrease towards the end of the forecasting interval, until below the share of the baseline year. The Pension Pillar 2 will have an increasingly substantial share in the total pension expenditures, and is expected to amount to around 0.8% of GDP at the end of the forecasting interval. ...
... gradual decrease towards the end of the forecasting interval, until below the share of the baseline year. The Pension Pillar 2 will have an increasingly substantial share in the total pension expenditures, and is expected to amount to around 0.8% of GDP at the end of the forecasting interval. ...
Stability and Growth Pact
![](https://commons.wikimedia.org/wiki/Special:FilePath/Fiscal_Compliance_2014-debt.png?width=300)
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.