Fiscal Policy in an Emerging Market Economy Andrés Velasco Harvard University
... “A fiscal rule is defined as a permanent constraint on fiscal policy through simple numerical limits on budgetary aggregates. Each of the elements in the definition is important: a rule delineates a numerical target over a longlasting time period with a view to guiding fiscal policy; it specifies ...
... “A fiscal rule is defined as a permanent constraint on fiscal policy through simple numerical limits on budgetary aggregates. Each of the elements in the definition is important: a rule delineates a numerical target over a longlasting time period with a view to guiding fiscal policy; it specifies ...
plans
... • Reduce the debt-to-GDP ratio beginning in 1996. • Strong interest in joining EMU. Initial plan did not aim at meeting Maastricht criterion of 3% deficit, but objectives made more ambitious in mid-course. ...
... • Reduce the debt-to-GDP ratio beginning in 1996. • Strong interest in joining EMU. Initial plan did not aim at meeting Maastricht criterion of 3% deficit, but objectives made more ambitious in mid-course. ...
Overview of the Fund’s response to the Crisis
... Fiscal policy: median primary balance to GDP ratios in the year before crisis (2008, circle) and the crisis year (2009, dot). Monetary policy: median nominal interest rates six months before crisis (2008 H2, circle) and six month into crisis (2009 H1, dot). ...
... Fiscal policy: median primary balance to GDP ratios in the year before crisis (2008, circle) and the crisis year (2009, dot). Monetary policy: median nominal interest rates six months before crisis (2008 H2, circle) and six month into crisis (2009 H1, dot). ...
Report of the Head of Regeneration and Improvement and Director
... Under the filter, areas can be included on the new assisted area map if they have either GDP per head lower than the EU average or recorded unemployment greater that 115% of the national average. Areas can either qualify at NUTS 2 (sub regions) or NUTS 3 (groups of districts or large unitaries), but ...
... Under the filter, areas can be included on the new assisted area map if they have either GDP per head lower than the EU average or recorded unemployment greater that 115% of the national average. Areas can either qualify at NUTS 2 (sub regions) or NUTS 3 (groups of districts or large unitaries), but ...
EMU Governance System
... • Rule-based system with complex procedures. • A complex set of rules: – Six-pack European Semester ...
... • Rule-based system with complex procedures. • A complex set of rules: – Six-pack European Semester ...
Deficits Saved the World (And then Went AWOL)
... In the 1930s the public sector was very small…This time around, the fall in GDP didn’t have to be as large, because falling GDP led to rising deficits, which absorbed some of the rise in the private surplus…The initial shock – the surge in desired private surplus – was if anything larger this time t ...
... In the 1930s the public sector was very small…This time around, the fall in GDP didn’t have to be as large, because falling GDP led to rising deficits, which absorbed some of the rise in the private surplus…The initial shock – the surge in desired private surplus – was if anything larger this time t ...
Fiscal policy
... Why are institutional changes also relevant? • According to government financial statistics, the central budget contains (only) about 70% of expenditure of the general budget (and 67% of the revenue) • Other elements include budget of regional authorities, municipalities, state funds, health insura ...
... Why are institutional changes also relevant? • According to government financial statistics, the central budget contains (only) about 70% of expenditure of the general budget (and 67% of the revenue) • Other elements include budget of regional authorities, municipalities, state funds, health insura ...
U.S. Fiscal Policy
... with a nominal interest rate that is higher than its rate of growth only if it maintains a small structural surplus • The U.S. primary structural balance of -4.0% GDP is ...
... with a nominal interest rate that is higher than its rate of growth only if it maintains a small structural surplus • The U.S. primary structural balance of -4.0% GDP is ...
Fiscal Policy During and After the Crisis
... Lessons Learned from Canada’s Fiscal Consolidation of the mid-1990s 1. Credible plans must be developed and communicated early ...
... Lessons Learned from Canada’s Fiscal Consolidation of the mid-1990s 1. Credible plans must be developed and communicated early ...
215-298-4-SP - Danubius International Conference Centre
... structure of European economy, which requests a harmonious economic development of their members that have chosen or wish to participate to European Monetary Union (EMU). These nominal conditions are intended to remove any tensions between members, caused especially by the spread of negative effects ...
... structure of European economy, which requests a harmonious economic development of their members that have chosen or wish to participate to European Monetary Union (EMU). These nominal conditions are intended to remove any tensions between members, caused especially by the spread of negative effects ...
A quick Guide to Regional Policy - John Birchall
... Over ¼ of EU-25 population lives in regions below 75% of EU average GDP 13 Member States of EU-25 have GDP below 90% of average – 21% of population ...
... Over ¼ of EU-25 population lives in regions below 75% of EU average GDP 13 Member States of EU-25 have GDP below 90% of average – 21% of population ...
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... Medium-term budget 2010-2013 primary surplus by plan. 4 percentage points of GDP (compared with 2009) by 2013 (reduce actual deficit by 3 percentage points of GDP). ...
... Medium-term budget 2010-2013 primary surplus by plan. 4 percentage points of GDP (compared with 2009) by 2013 (reduce actual deficit by 3 percentage points of GDP). ...
The enlargement(s) of the euro area
... – The ECB examines whether a Member State has participated in ERM II for at least two years prior to the examination without severe tensions, in particular, without devaluing its currency against the euro. – Focus is put on the exchange rate being close to the central rate against the euro, while al ...
... – The ECB examines whether a Member State has participated in ERM II for at least two years prior to the examination without severe tensions, in particular, without devaluing its currency against the euro. – Focus is put on the exchange rate being close to the central rate against the euro, while al ...
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... very high levels. This is why it was very important that the heads of state and government declared on 11 February 2010 that they were ready to “take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole”. I said, on behalf of the ECB, that I appr ...
... very high levels. This is why it was very important that the heads of state and government declared on 11 February 2010 that they were ready to “take determined and coordinated action, if needed, to safeguard financial stability in the euro area as a whole”. I said, on behalf of the ECB, that I appr ...
Top margin 1
... As the European economy suffers its worst post-war recession, the European Recovery Plan provides needed fiscal support to ailing economies. But rising public debts and the contingent liabilities incurred by governments to support the financial sector, together with the prospected increases in age-r ...
... As the European economy suffers its worst post-war recession, the European Recovery Plan provides needed fiscal support to ailing economies. But rising public debts and the contingent liabilities incurred by governments to support the financial sector, together with the prospected increases in age-r ...
Should the European Stability and Growth Pact be Changed?
... • In countries with a strong growth performance wage increases are relatively high. This leads to an above average inflation rate, and the real interest rate declines so that the economy obtains an additional stimulus. This process also improves the fiscal situation. • In countries with a relatively w ...
... • In countries with a strong growth performance wage increases are relatively high. This leads to an above average inflation rate, and the real interest rate declines so that the economy obtains an additional stimulus. This process also improves the fiscal situation. • In countries with a relatively w ...
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... not consider exclusively national circumstances. Against this background, the reduction of the public debt and the creation of an adequate scope for self-provision are only two elements of the required answer to the demographic question. Increasing immigration of qualified workers also contributes t ...
... not consider exclusively national circumstances. Against this background, the reduction of the public debt and the creation of an adequate scope for self-provision are only two elements of the required answer to the demographic question. Increasing immigration of qualified workers also contributes t ...
Austria: Staff Concluding Statement of the 2016 Article IV Mission
... this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and deci ...
... this statement are those of the IMF staff and do not necessarily represent the views of the IMF’s Executive Board. Based on the preliminary findings of this mission, staff will prepare a report that, subject to management approval, will be presented to the IMF Executive Board for discussion and deci ...
Measuring UK fiscal stance since the Second World War
... stood at 182 per cent of GDP, higher than in the immediate aftermath of the war. By contrast, the large debt run up during the 1939–45 war started declining almost as soon as demobilisation was underway: the debt burden fell in each of the 30 years after 1947, after which it stabilised at around 50 ...
... stood at 182 per cent of GDP, higher than in the immediate aftermath of the war. By contrast, the large debt run up during the 1939–45 war started declining almost as soon as demobilisation was underway: the debt burden fell in each of the 30 years after 1947, after which it stabilised at around 50 ...
Nicaragua: 2017 Article IV Consultation Concluding
... sustainability, the mission recommends building additional fiscal buffers of about 1.6 percent of GDP over the next two years through revenue mobilization and improving expenditure composition and efficiency, while safeguarding pro-growth public investment and ...
... sustainability, the mission recommends building additional fiscal buffers of about 1.6 percent of GDP over the next two years through revenue mobilization and improving expenditure composition and efficiency, while safeguarding pro-growth public investment and ...
Powerpoint
... • Tax code simplification and repeal of the Code of Books and Records • New IT system interconnecting all tax offices and compulsory electronic submission of tax declarations • Full scope audits according to risk-based criteria. • Consolidation of tax offices into larger units and compulsory rotatio ...
... • Tax code simplification and repeal of the Code of Books and Records • New IT system interconnecting all tax offices and compulsory electronic submission of tax declarations • Full scope audits according to risk-based criteria. • Consolidation of tax offices into larger units and compulsory rotatio ...
George A Provopoulos: The Greek economic crisis and the euro
... Entry into the euro area provided Greece with an improved, stability-oriented environment. The ECB was – and is – the guardian of monetary stability. The Stability and Growth Pact was supposed to help ensure fiscal discipline. These changes in the economic environment were crucial benefits for a cou ...
... Entry into the euro area provided Greece with an improved, stability-oriented environment. The ECB was – and is – the guardian of monetary stability. The Stability and Growth Pact was supposed to help ensure fiscal discipline. These changes in the economic environment were crucial benefits for a cou ...
DownloadPDF - 556 KB - European Commission
... GDP in Germany and the Netherlands would increase by more than 2 per cent. Long-term GDP effects exceed the short-term impact because government investment raises the productivity of private capital and labour over a sustained period of time (positive supply effect). In this scenario, the real GDP i ...
... GDP in Germany and the Netherlands would increase by more than 2 per cent. Long-term GDP effects exceed the short-term impact because government investment raises the productivity of private capital and labour over a sustained period of time (positive supply effect). In this scenario, the real GDP i ...
1 EN annexe autre acte part1 v
... GDP in Germany and the Netherlands would increase by more than 2 per cent. Long-term GDP effects exceed the short-term impact because government investment raises the productivity of private capital and labour over a sustained period of time (positive supply effect). In this scenario, the real GDP i ...
... GDP in Germany and the Netherlands would increase by more than 2 per cent. Long-term GDP effects exceed the short-term impact because government investment raises the productivity of private capital and labour over a sustained period of time (positive supply effect). In this scenario, the real GDP i ...
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.