This PDF is a selection from an out-of-print volume from... of Economic Research Volume Title: International Aspects of Fiscal Policies
... Within each of these exchange rate systems, we analyze the behavior and characteristics of fiscal policy and examine the way changes in the rules of the game affect the incentives to use fiscal and monetary policies. In particular, we seek to determine whether the various inefficiencies of floating ...
... Within each of these exchange rate systems, we analyze the behavior and characteristics of fiscal policy and examine the way changes in the rules of the game affect the incentives to use fiscal and monetary policies. In particular, we seek to determine whether the various inefficiencies of floating ...
Fiscal decentralization, macrostability, and growth
... ventionally addressed issues in the theory of fiscal federalism, it has received a significant amount of attention in the empirical literature in recent years 1. Whether or not a direct rela tionship exists between fiscal decentralization and economic growth, however, remains, an unanswered questio ...
... ventionally addressed issues in the theory of fiscal federalism, it has received a significant amount of attention in the empirical literature in recent years 1. Whether or not a direct rela tionship exists between fiscal decentralization and economic growth, however, remains, an unanswered questio ...
Comparing fiscal multipliers across models and - ECB
... This article provides estimates of output multipliers for alternative fiscal instruments obtained by simulating fifteen structural models of the European System of Central Banks. It documents how estimates depend upon the zero lower bound (ZLB) on the monetary policy rate, the duration of the fiscal ...
... This article provides estimates of output multipliers for alternative fiscal instruments obtained by simulating fifteen structural models of the European System of Central Banks. It documents how estimates depend upon the zero lower bound (ZLB) on the monetary policy rate, the duration of the fiscal ...
NBER WORKING PAPER SERIES GROWTH FORECAST ERRORS AND FISCAL MULTIPLIERS Daniel Leigh
... forecasts of fiscal consolidation. Under rational expectations, and assuming that forecasters used the correct model for forecasting, the coefficient on the fiscal consolidation forecast should be zero. If, on the other hand, forecasters underestimated fiscal multipliers, there should be a negative ...
... forecasts of fiscal consolidation. Under rational expectations, and assuming that forecasters used the correct model for forecasting, the coefficient on the fiscal consolidation forecast should be zero. If, on the other hand, forecasters underestimated fiscal multipliers, there should be a negative ...
Indicators of Fiscal Impulse for New Zealand
... balance. The most common approach to this drawback is to estimate a cyclically adjusted or structural fiscal balance. The structural fiscal balance is an indicator of what the fiscal balance would be if the economy were operating at potential output. Second, because of inherent differences in each o ...
... balance. The most common approach to this drawback is to estimate a cyclically adjusted or structural fiscal balance. The structural fiscal balance is an indicator of what the fiscal balance would be if the economy were operating at potential output. Second, because of inherent differences in each o ...
2017 Budget assumptions - Casa de Bolsa Banorte Ixe
... Budget and Fiscal Responsibility Law, its assumptions for 2017 fiscal budget. In our opinion, MoF made a responsible exercise to face the macroeconomic reality in Mexico, particularly after the sharp fall in oil prices and their likely persistence at low levels, as well as the high volatility in glo ...
... Budget and Fiscal Responsibility Law, its assumptions for 2017 fiscal budget. In our opinion, MoF made a responsible exercise to face the macroeconomic reality in Mexico, particularly after the sharp fall in oil prices and their likely persistence at low levels, as well as the high volatility in glo ...
Marco Cangiano , E. Baldacci , S. Mahfouz , andAxel Schimmelpfenning The Effectiveness of Fiscal Policy in Stimulating Economic Activity: An Empirical Investigation (Second IMF Research Conference)..
... account for the interactions between fiscal policy and growth during recession episodes: simple descriptive analysis, multidimensional statistical analysis, and regression analysis. The paper is organized as follows. Section II presents the definitions and the data used in the rest of paper. Section ...
... account for the interactions between fiscal policy and growth during recession episodes: simple descriptive analysis, multidimensional statistical analysis, and regression analysis. The paper is organized as follows. Section II presents the definitions and the data used in the rest of paper. Section ...
Tilburg University Money, Fiscal Defecits and Government Debt in a
... of an independent common central bank, the European Central Bank (ECB), that manages the common monetary policy has considerable economic, institutional and political consequences3. Concerning the economic consequences, the ECB will control a stock of European base money of some 600 bln $ and will b ...
... of an independent common central bank, the European Central Bank (ECB), that manages the common monetary policy has considerable economic, institutional and political consequences3. Concerning the economic consequences, the ECB will control a stock of European base money of some 600 bln $ and will b ...
Dynamic Monetary and Fiscal Policy Games under Adaptive Learning
... monetary authority has been the one that has most often given in to the fiscal pressures. But with greater importance granted to independent monetary policy and stress on rule-based policies, the policy game has changed. In literature, different games between these policies have been extensively stu ...
... monetary authority has been the one that has most often given in to the fiscal pressures. But with greater importance granted to independent monetary policy and stress on rule-based policies, the policy game has changed. In literature, different games between these policies have been extensively stu ...
The Impact of Fiscal Policy on Particular Economic Sectors in Turkey
... The latter view took as its benchmark a rather thorough-going commitment to the maintenance of a balanced budget aggregate spending being restricted to the size of aggregate recurrent revenue with a view to the objective of sound management of the government sector’s ‘balance sheet’. Or to put the ...
... The latter view took as its benchmark a rather thorough-going commitment to the maintenance of a balanced budget aggregate spending being restricted to the size of aggregate recurrent revenue with a view to the objective of sound management of the government sector’s ‘balance sheet’. Or to put the ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... The events of the 1980s and 1990s in Japan suggest that when a government becomes strapped for funds, it will tend to borrow from the world credit market rather than raise taxes to finance additional public spending. Indeed, many governments did either not raise broadly based taxes (e.g., the Thatch ...
... The events of the 1980s and 1990s in Japan suggest that when a government becomes strapped for funds, it will tend to borrow from the world credit market rather than raise taxes to finance additional public spending. Indeed, many governments did either not raise broadly based taxes (e.g., the Thatch ...
Fiscal and Monetary Policy in Australia: an SVAR Model
... defending many economies from the ravages of the Global Financial Crisis (GFC) of 2007-08. In the case of Australia, a significant fiscal stimulus package of $A42billion (approximately 4% of annual GDP) was launched in 2008 in an attempt to forestall a potential recession. At the same time, around t ...
... defending many economies from the ravages of the Global Financial Crisis (GFC) of 2007-08. In the case of Australia, a significant fiscal stimulus package of $A42billion (approximately 4% of annual GDP) was launched in 2008 in an attempt to forestall a potential recession. At the same time, around t ...
Essays on Fiscal Policy in Developing Countries and Microstates Universitat Autònoma de Barcelona
... under explored area in the literature. The few existing studies, though an important first step in fulfilling this existing gap, remain open to many criticisms on the basis of methodological and analytical grounds. This thesis is an attempt to address three important areas in the literature on fisca ...
... under explored area in the literature. The few existing studies, though an important first step in fulfilling this existing gap, remain open to many criticisms on the basis of methodological and analytical grounds. This thesis is an attempt to address three important areas in the literature on fisca ...
Government size, composition, volatility and - ECB
... growth. On the other hand, a lower level of spending implies that fewer revenues are needed to achieve balanced budgets, which means that lower taxes can be levied, therefore contributing to stimulate growth and employment. Public spending is a key variable that influences the sustainability of publ ...
... growth. On the other hand, a lower level of spending implies that fewer revenues are needed to achieve balanced budgets, which means that lower taxes can be levied, therefore contributing to stimulate growth and employment. Public spending is a key variable that influences the sustainability of publ ...
Fiscal Policy and Macroeconomic Stability: Automatic Stabilizers
... This paper looks further into the robustness of the results described above. Our contribution rests on 4 elements. First, our sample includes 49 industrial and developing countries for which reasonably long time series exist for fiscal data covering the general government. Second, we take into accou ...
... This paper looks further into the robustness of the results described above. Our contribution rests on 4 elements. First, our sample includes 49 industrial and developing countries for which reasonably long time series exist for fiscal data covering the general government. Second, we take into accou ...
Estimating the Average Treatment Effect of Fiscal Policy
... of a study of the effects of Black-White differences in cognitive achievement on earnings. The LPIPWRA fits naturally between these two strands of the literature. What do we find? Our results contrast with the expansionary austerity view of AA, and tend to echo or even amplify the opposing view of t ...
... of a study of the effects of Black-White differences in cognitive achievement on earnings. The LPIPWRA fits naturally between these two strands of the literature. What do we find? Our results contrast with the expansionary austerity view of AA, and tend to echo or even amplify the opposing view of t ...
Monetary Policy and the Economy Q3/04 – Expansionary Fiscal
... founding members of the euro area had been selected in 1998, consolidation efforts were relaxed. Exacerbated by only very moderate growth since the turn of the millennium, budget balances have consequently worsened considerably in Europe. In order to continue to meet the fiscal criteria established ...
... founding members of the euro area had been selected in 1998, consolidation efforts were relaxed. Exacerbated by only very moderate growth since the turn of the millennium, budget balances have consequently worsened considerably in Europe. In order to continue to meet the fiscal criteria established ...
Fiscal rules in Latin America: a survey.
... properties. Argentina, Brazil and Peru apply numerical rules targeting the overall/primary public balance and/or public spending. The Venezuelan framework has, in practice, been diluted after its introduction. The coverage of the rule depends on the degree of decentralisation of fiscal systems, with ...
... properties. Argentina, Brazil and Peru apply numerical rules targeting the overall/primary public balance and/or public spending. The Venezuelan framework has, in practice, been diluted after its introduction. The coverage of the rule depends on the degree of decentralisation of fiscal systems, with ...
Economic crisis in Europe: causes
... to labour markets, boost investment in public infrastructure and support companies. To ensure that the recovery takes hold and to maintain the EU’s growth potential in the long-run, the focus must increasingly shift from short-term demand management to supply-side structural measures. Failing to do ...
... to labour markets, boost investment in public infrastructure and support companies. To ensure that the recovery takes hold and to maintain the EU’s growth potential in the long-run, the focus must increasingly shift from short-term demand management to supply-side structural measures. Failing to do ...
2016-2019 Stability Programme
... make an additional €3.8bn in savings in 2016. In a similar vein, the next budget bill will include additional measures of €5bn in 2017 across all general government sub-sectors in proportion to their share of public spending. The goal of reducing the deficit to below 3% of GDP by 2017 will be met. T ...
... make an additional €3.8bn in savings in 2016. In a similar vein, the next budget bill will include additional measures of €5bn in 2017 across all general government sub-sectors in proportion to their share of public spending. The goal of reducing the deficit to below 3% of GDP by 2017 will be met. T ...
Stability Programme - European Commission
... make an additional €3.8bn in savings in 2016. In a similar vein, the next budget bill will include additional measures of €5bn in 2017 across all general government sub-sectors in proportion to their share of public spending. The goal of reducing the deficit to below 3% of GDP by 2017 will be met. T ...
... make an additional €3.8bn in savings in 2016. In a similar vein, the next budget bill will include additional measures of €5bn in 2017 across all general government sub-sectors in proportion to their share of public spending. The goal of reducing the deficit to below 3% of GDP by 2017 will be met. T ...
Canada`s Looming Fiscal Squeeze - Macdonald
... and federal governments and will force governments at all levels to make some difficult fiscal decisions. Confronted with spending demands that rise faster than tax revenues, future Canadian governments will be faced with three broad choices. First, they can attempt to reduce the growth rate of over ...
... and federal governments and will force governments at all levels to make some difficult fiscal decisions. Confronted with spending demands that rise faster than tax revenues, future Canadian governments will be faced with three broad choices. First, they can attempt to reduce the growth rate of over ...
Fiscal multipliers and beyond - ECB
... openness of the economy – a low degree of openness increases the multiplier since the scope for external leakage of the consolidation impact (especially lower imports) is limited. On the other hand, the more open an economy, the larger the potential for country spillover effects when consolidation t ...
... openness of the economy – a low degree of openness increases the multiplier since the scope for external leakage of the consolidation impact (especially lower imports) is limited. On the other hand, the more open an economy, the larger the potential for country spillover effects when consolidation t ...
The public budget balance -
... purposes than the ones mentioned above. They are used as a measure of the fiscal policy in the medium term, to see whether current fiscal policy is viable. They are sometimes also used as a measure of the effect of fiscal policy on aggregate demand. Finally, they serve as a definition of neutral fis ...
... purposes than the ones mentioned above. They are used as a measure of the fiscal policy in the medium term, to see whether current fiscal policy is viable. They are sometimes also used as a measure of the effect of fiscal policy on aggregate demand. Finally, they serve as a definition of neutral fis ...
The public budget balance - fiscal indicators and cyclical sensitivity
... purposes than the ones mentioned above. They are used as a measure of the fiscal policy in the medium term, to see whether current fiscal policy is viable. They are sometimes also used as a measure of the effect of fiscal policy on aggregate demand. Finally, they serve as a definition of neutral fis ...
... purposes than the ones mentioned above. They are used as a measure of the fiscal policy in the medium term, to see whether current fiscal policy is viable. They are sometimes also used as a measure of the effect of fiscal policy on aggregate demand. Finally, they serve as a definition of neutral fis ...
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.