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Cyclical adjustment of the government budget balance
... profits and consumption) and unemployment; and (ii) the elasticity of these GDP components and unemployment in relation to overall GDP. These elasticities are usually fairly close to unity on average. This implies that the overall budget sensitivity is usually estimated as being close to the share o ...
... profits and consumption) and unemployment; and (ii) the elasticity of these GDP components and unemployment in relation to overall GDP. These elasticities are usually fairly close to unity on average. This implies that the overall budget sensitivity is usually estimated as being close to the share o ...
Europe`s Stability and Growth Pact in the Context
... Both aggregate demand and supply are affected. Monetary and fiscal policy can help in the short run to smooth the adjustment but it can do little to completely offset the underlying shock The optimal fiscal response is a fiscal expansion followed by a long term fiscal consolidation The exist ...
... Both aggregate demand and supply are affected. Monetary and fiscal policy can help in the short run to smooth the adjustment but it can do little to completely offset the underlying shock The optimal fiscal response is a fiscal expansion followed by a long term fiscal consolidation The exist ...
Summary of Economic Survey 2016-17
... The FRL aimed to impose fiscal discipline through a number of mechanisms Fiscal targets were established, which were the same for all states: the overall deficit was not allowed to exceed 3 percent of GSDP at any point The 12th Finance Commission allowed states to borrow directly from the mark ...
... The FRL aimed to impose fiscal discipline through a number of mechanisms Fiscal targets were established, which were the same for all states: the overall deficit was not allowed to exceed 3 percent of GSDP at any point The 12th Finance Commission allowed states to borrow directly from the mark ...
Euro area fiscal policies and the crisis
... • The crisis exposed deficiencies of past policies and demonstrated need for establishing sound fiscal positions in good times. • The 2005 reform of the SGP a mixed success – corrective arm improved, but applied with delays, enforcement of preventive arm remains weak. • Large fiscal imbalances in mo ...
... • The crisis exposed deficiencies of past policies and demonstrated need for establishing sound fiscal positions in good times. • The 2005 reform of the SGP a mixed success – corrective arm improved, but applied with delays, enforcement of preventive arm remains weak. • Large fiscal imbalances in mo ...
Gerd Schwartz, Deputy Director of the Fiscal Affairs
... Cyclically Adjusted Primary Balance in 2020-30 and Required ...
... Cyclically Adjusted Primary Balance in 2020-30 and Required ...
Germany - European Commission
... adopted by the Council on 12 July 2016, the follow-up given to the recommendations adopted in previous years and Germany’s progress towards its national Europe 2020 targets. It also included an in-depth review under Article 5 of Regulation (EU) No 1176/2011, the results of which were also published ...
... adopted by the Council on 12 July 2016, the follow-up given to the recommendations adopted in previous years and Germany’s progress towards its national Europe 2020 targets. It also included an in-depth review under Article 5 of Regulation (EU) No 1176/2011, the results of which were also published ...
here
... Note distinction between automatic and discretionary changes in the budget balance. (Diagram 2) Discretionary change occurs when the government deliberately changes G, T or SW shifting the lines The result is a balanced budget at different levels of GNP. ...
... Note distinction between automatic and discretionary changes in the budget balance. (Diagram 2) Discretionary change occurs when the government deliberately changes G, T or SW shifting the lines The result is a balanced budget at different levels of GNP. ...
Challenges in restoring fiscal sustainability
... Higher government debt tends to raise long-term interest rates Spread between long-term and short-term interest rates versus gross government debt in % of GDP ...
... Higher government debt tends to raise long-term interest rates Spread between long-term and short-term interest rates versus gross government debt in % of GDP ...
Economic Outlook
... and symmetric adjustment is needed through reforms to labour and product markets, including liberalisation of services in Germany that would strengthen and rebalance demand. Weakness in the banking system remains a major drag on growth in the euro area. The Asset Quality Review and stress tests in 2 ...
... and symmetric adjustment is needed through reforms to labour and product markets, including liberalisation of services in Germany that would strengthen and rebalance demand. Weakness in the banking system remains a major drag on growth in the euro area. The Asset Quality Review and stress tests in 2 ...
Olivier Blanchard Carlo Cottarelli 28 June 2010, VOX.EU
... of either an average pace of adjustment, or of a fiscal target to be achieved within 4–5 years). There is no simple one-size-fits-all rule. Our current macroeconomic projections imply that an average improvement in the cyclically-adjusted primary balance of some 1 percentage point per year during th ...
... of either an average pace of adjustment, or of a fiscal target to be achieved within 4–5 years). There is no simple one-size-fits-all rule. Our current macroeconomic projections imply that an average improvement in the cyclically-adjusted primary balance of some 1 percentage point per year during th ...
Federal Debt,Deficits,Social Security
... Standardized Budget versus the Actual Budget • The Standardized Budget… • measures the Federal budget deficit or surplus that would occur if the economy operated at full employment throughout the year. (full employment budget) • Cyclical deficits or surpluses are those that result from changes in G ...
... Standardized Budget versus the Actual Budget • The Standardized Budget… • measures the Federal budget deficit or surplus that would occur if the economy operated at full employment throughout the year. (full employment budget) • Cyclical deficits or surpluses are those that result from changes in G ...
Slide 1
... higher taxes on labour and capital would have an adverse impact on economic activity and competitiveness - tax policy in these fields must focus on improving the tax capacity by preserving the current tax rates and broadening the tax base ...
... higher taxes on labour and capital would have an adverse impact on economic activity and competitiveness - tax policy in these fields must focus on improving the tax capacity by preserving the current tax rates and broadening the tax base ...
Fiscal Policy and Macroeconomic Stabilization in The
... Maastricht Treaty is only one of several possible measures the government’s financial position. • Gross government debt nets out all claims and liabilities within the government sector, but claims on the private sector are not included. • Net government debt, which deducts government claims on the p ...
... Maastricht Treaty is only one of several possible measures the government’s financial position. • Gross government debt nets out all claims and liabilities within the government sector, but claims on the private sector are not included. • Net government debt, which deducts government claims on the p ...
Fiscal Policy and Macroeconomic Stabilization in The Euro Area
... Maastricht Treaty is only one of several possible measures the government’s financial position. • Gross government debt nets out all claims and liabilities within the government sector, but claims on the private sector are not included. • Net government debt, which deducts government claims on the p ...
... Maastricht Treaty is only one of several possible measures the government’s financial position. • Gross government debt nets out all claims and liabilities within the government sector, but claims on the private sector are not included. • Net government debt, which deducts government claims on the p ...
The Széll Kálmán Plan 2.0 is completed
... demand, we had to anticipate a less optimal macro outlook, but the core issue of economic policy discussions has still been sustainable fiscal management. Precisely for the above reasons we consider it crucial that slightly more than one year after the Széll Kálmán Plan was published the government ...
... demand, we had to anticipate a less optimal macro outlook, but the core issue of economic policy discussions has still been sustainable fiscal management. Precisely for the above reasons we consider it crucial that slightly more than one year after the Széll Kálmán Plan was published the government ...
report - National Bank
... Little wonder then that the government has de-emphasized earlier pledges to limit the deficit to $10 billion a year and return to balance by the end of its mandate. Given our economic forecast, achieving such arbitrary fiscal objectives would entail more than just putting off stimulus, but actually ...
... Little wonder then that the government has de-emphasized earlier pledges to limit the deficit to $10 billion a year and return to balance by the end of its mandate. Given our economic forecast, achieving such arbitrary fiscal objectives would entail more than just putting off stimulus, but actually ...
RE_art110
... recognise their losses and bondholders to recapitalise them if necessary, raising additional capital, first from the market and then by converting bondholders’ bonds into shares; The need for an alternative policy on EU socio-economic governance 18. Insists that further fiscal stimulus is needed for ...
... recognise their losses and bondholders to recapitalise them if necessary, raising additional capital, first from the market and then by converting bondholders’ bonds into shares; The need for an alternative policy on EU socio-economic governance 18. Insists that further fiscal stimulus is needed for ...
Introduction to Management and Organisational Behaviour
... – Aims at avoiding reaching the limit in bad years – Calls for surpluses in good years ...
... – Aims at avoiding reaching the limit in bad years – Calls for surpluses in good years ...
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... consider these Proposals as a matter of urgency by the end of 2012. When an effective single supervisory mechanism is established, involving the ECB, for banks in the euro area the ESM could, following a regular decision, have the possibility to recapitalize banks directly. This would rely on approp ...
... consider these Proposals as a matter of urgency by the end of 2012. When an effective single supervisory mechanism is established, involving the ECB, for banks in the euro area the ESM could, following a regular decision, have the possibility to recapitalize banks directly. This would rely on approp ...
10 years Euro, what are the prospects?
... Scenario A: “ Euro takes-over the role of the dollar” • Euro will become the dominant international currency by 2015 - 2020? • Fiscal discipline is of crucial important! Debt to GDP (< 60% !!!) and budget deficit (< 3% !!!) must be under control and manageable • Inflation targets of < = 2%!!! • Res ...
... Scenario A: “ Euro takes-over the role of the dollar” • Euro will become the dominant international currency by 2015 - 2020? • Fiscal discipline is of crucial important! Debt to GDP (< 60% !!!) and budget deficit (< 3% !!!) must be under control and manageable • Inflation targets of < = 2%!!! • Res ...
Assaf Razin: The Next Stage of the Global Financial Crisis The
... Insufficient political union behind the Euro A weak political union in which the monetary union should can be embedded. Such a political union should ensure that budgetary and economic policies are coordinated, preventing the large divergences in economic and budgetary It implies that an automatic ...
... Insufficient political union behind the Euro A weak political union in which the monetary union should can be embedded. Such a political union should ensure that budgetary and economic policies are coordinated, preventing the large divergences in economic and budgetary It implies that an automatic ...
Economics of Monetary Union 10e
... budget deficit should be declining continuously and substantially and come close to the 3%norm, or the deviation from the reference value (3%) 'should be exceptional and temporary and remain close to the reference value', art. 104c(a)); (5) government debt 60%of GDP if this condition is not satisf ...
... budget deficit should be declining continuously and substantially and come close to the 3%norm, or the deviation from the reference value (3%) 'should be exceptional and temporary and remain close to the reference value', art. 104c(a)); (5) government debt 60%of GDP if this condition is not satisf ...
Reflections on the euro area fiscal stance
... need for discretionary fiscal action in deep and protracted downturns. ...
... need for discretionary fiscal action in deep and protracted downturns. ...
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.