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4.Flexible vs Fixed Exchange Rate Systems
... Result: Monetary policy is effective in the short run while fiscal policy is not effective. ...
... Result: Monetary policy is effective in the short run while fiscal policy is not effective. ...
as % of GNP - The Economic and Social Research Institute
... of the Pact was not implemented and the equivalent stipulation in the Treaty that countries permitted to join the Euro Area should have debt levels below this threshold did not prevent Belgium, Italy or Greece from successfully joining the euro with debt levels that were significantly higher. In te ...
... of the Pact was not implemented and the equivalent stipulation in the Treaty that countries permitted to join the Euro Area should have debt levels below this threshold did not prevent Belgium, Italy or Greece from successfully joining the euro with debt levels that were significantly higher. In te ...
The future of the Eurozone: Right and Wrong Turns on the Way Ahead"
... March 2010: financial support to Greece (€10bn) May 2010: creation of EFSF (€440bn) and EFSM (€60bn) September 2010: launch of economic governance reform ...
... March 2010: financial support to Greece (€10bn) May 2010: creation of EFSF (€440bn) and EFSM (€60bn) September 2010: launch of economic governance reform ...
CLOSING THE GAPS OF THE SGP. WHY A
... Commission, OECD and IMF, focussed in recent years on the exchange of best practices regarding the supporting role of institutions for an effective enforcement of fiscal rules. The Pact itself, however, was blind with respect to the national institutional setup. Moving beyond the mere public finance ...
... Commission, OECD and IMF, focussed in recent years on the exchange of best practices regarding the supporting role of institutions for an effective enforcement of fiscal rules. The Pact itself, however, was blind with respect to the national institutional setup. Moving beyond the mere public finance ...
Money Market - TATA SECURITIES LIMITED
... Borrowing money from the market is a better option because if the government were to print more notes it would increase supply of money in the economy thereby reducing its “buying power” ...
... Borrowing money from the market is a better option because if the government were to print more notes it would increase supply of money in the economy thereby reducing its “buying power” ...
Meaning and scope
... Meaning and scope Arthur Smithies “ a ploicy under which government uses its expenditure and revenue programs to produce desirable effects and avoid undesirable effects on the national income, production and employment.” Fiscal policy is the government program of making discretionary changes in the ...
... Meaning and scope Arthur Smithies “ a ploicy under which government uses its expenditure and revenue programs to produce desirable effects and avoid undesirable effects on the national income, production and employment.” Fiscal policy is the government program of making discretionary changes in the ...
Evaluation
... all EU members satisfied these criteria by Jan. 1, 1999. b. The transition process to a unified currency presented numerous potential problems, but nothing happened. c. participation in EMU eliminates possibility of domestic monetary policy, and forces countries to try to maintain performance of the ...
... all EU members satisfied these criteria by Jan. 1, 1999. b. The transition process to a unified currency presented numerous potential problems, but nothing happened. c. participation in EMU eliminates possibility of domestic monetary policy, and forces countries to try to maintain performance of the ...
PDF Download
... Investors have now clearly decided that the US current account deficit is a matter of concern. The key issue is what change in the trend of that deficit investors wish to see. Even in our baseline forecast, the currency movements stand to be substantial. A continuing slide in the US dollar expresses ...
... Investors have now clearly decided that the US current account deficit is a matter of concern. The key issue is what change in the trend of that deficit investors wish to see. Even in our baseline forecast, the currency movements stand to be substantial. A continuing slide in the US dollar expresses ...
EPS Session5a 2011
... policy.” a) What is a “demand shock” and what caused it in the present context. b) Outline the major instruments of monetary policy. Explain the meaning of the term “money multiplier”? Why is it “collapsing”? What measures could be taken to raise its value? What effect would a steep fall in property ...
... policy.” a) What is a “demand shock” and what caused it in the present context. b) Outline the major instruments of monetary policy. Explain the meaning of the term “money multiplier”? Why is it “collapsing”? What measures could be taken to raise its value? What effect would a steep fall in property ...
Medium-Term Expenditure Planning
... Medium Term Expenditure Framework (MTEF) Detailed costing/output item & performance budget allocations ...
... Medium Term Expenditure Framework (MTEF) Detailed costing/output item & performance budget allocations ...
International Monetary Fund
... welcome. As the growth outlook worsens more significantly than assumed in the mediumterm plan, these early savings have helped create a cushion for a cyclical margin to stay within the Stability and Growth Pact threshold deficit of 3 percent of GDP. The savings have also helped support the governmen ...
... welcome. As the growth outlook worsens more significantly than assumed in the mediumterm plan, these early savings have helped create a cushion for a cyclical margin to stay within the Stability and Growth Pact threshold deficit of 3 percent of GDP. The savings have also helped support the governmen ...
Colombia : Macro rebalancing and key political milestones
... slight recovery in commodity prices. Oil and petroleum products fell to 35% of total exports in 2016 from 55% in 2013. The CAD is not covered by net foreign direct investments (FDI), which used to be dynamic over the past decade. Nevertheless, other capital flows have continued to fill the external ...
... slight recovery in commodity prices. Oil and petroleum products fell to 35% of total exports in 2016 from 55% in 2013. The CAD is not covered by net foreign direct investments (FDI), which used to be dynamic over the past decade. Nevertheless, other capital flows have continued to fill the external ...
Lecture 9 & 10 - National University of Ireland, Galway
... Overall balance = current balance + capital balance ...
... Overall balance = current balance + capital balance ...
Recommendation for a COUNCIL RECOMMENDATION on the 2016
... and in view of the close interlinkages between the economies in the economic and monetary union, Spain should ensure the full and timely implementation of the recommendation. ...
... and in view of the close interlinkages between the economies in the economic and monetary union, Spain should ensure the full and timely implementation of the recommendation. ...
DOC - Europa.eu
... investments that support sustainable growth can be accommodated within EU fiscal rules, i.e. under the preventive arm of the Stability and Growth Pact. This means that only Member States that are not in EDP and respect the deficit and debt thresholds throughout implementation of the clause are eligi ...
... investments that support sustainable growth can be accommodated within EU fiscal rules, i.e. under the preventive arm of the Stability and Growth Pact. This means that only Member States that are not in EDP and respect the deficit and debt thresholds throughout implementation of the clause are eligi ...
This PDF is a selection from a published volume from... Economic Research Volume Title: Europe and the Euro
... On the second issue, obviously it is hard to base any conclusion on less than ten years of data, but even leaving this problem aside, I think the verdict is still open, and hard to reach. As the authors point out in section 8.4, following the discussion at the conference, the problem is well illustr ...
... On the second issue, obviously it is hard to base any conclusion on less than ten years of data, but even leaving this problem aside, I think the verdict is still open, and hard to reach. As the authors point out in section 8.4, following the discussion at the conference, the problem is well illustr ...
Glossary, Fiscal Monitor, April 2015
... Cyclical component of the overall fiscal balance, computed as the difference between cyclical revenues and cyclical expenditures. The latter are typically computed using country-specific elasticities of aggregate revenue and expenditure series with respect to the output gap. Where unavailable, stand ...
... Cyclical component of the overall fiscal balance, computed as the difference between cyclical revenues and cyclical expenditures. The latter are typically computed using country-specific elasticities of aggregate revenue and expenditure series with respect to the output gap. Where unavailable, stand ...
Impact of fiscal policies changes on the budgetary revenues
... According to the model results, the best policy measure for Romania is the one consisting in the reduction of flat tax by, at least, 4 percentage points; In these conditions, the medium term economic growth (2011-2012) will continue to have a high level - of more than 5% - and will continue to be su ...
... According to the model results, the best policy measure for Romania is the one consisting in the reduction of flat tax by, at least, 4 percentage points; In these conditions, the medium term economic growth (2011-2012) will continue to have a high level - of more than 5% - and will continue to be su ...
The debt crisis in the peripheral countries of the Euro
... not be sustainable. . Which value for the new currency? In the short run, a depreciation of the currency increases the competitiveness, but if it is followed by a strong rise in the inflation rate, interest rates would be pushed up: as a consequence GDP might be hit negatively and competitiveness ...
... not be sustainable. . Which value for the new currency? In the short run, a depreciation of the currency increases the competitiveness, but if it is followed by a strong rise in the inflation rate, interest rates would be pushed up: as a consequence GDP might be hit negatively and competitiveness ...
Assessment of the Fiscal Stance
... Ireland’s high debt levels and the need to restore creditworthiness meant that the principle of sustainability required that the deficit be reduced and the debt moved to lower levels. With the economy now recovering strongly, new considerations come into play in assessing how best to balance the pri ...
... Ireland’s high debt levels and the need to restore creditworthiness meant that the principle of sustainability required that the deficit be reduced and the debt moved to lower levels. With the economy now recovering strongly, new considerations come into play in assessing how best to balance the pri ...
Counter-cyclical fiscal measures
... market, major economies are also pursuing an expansionary fiscal policy to revive their economies. This is because the transmission of monetary policies has been greatly weakened amid the global financial crisis where credit flow has yet to return to normal. As a result, compared with accommodative ...
... market, major economies are also pursuing an expansionary fiscal policy to revive their economies. This is because the transmission of monetary policies has been greatly weakened amid the global financial crisis where credit flow has yet to return to normal. As a result, compared with accommodative ...
Greek government deficit at 3.2% of GDP and public
... Greece has submitted to the European Commission, at the beginning of May 2004, a revised notification of its data on deficit and debt for the year 2003. These revised data have been verified by Eurostat, the Statistical Office of the European Communities. These new data follow revisions of primary d ...
... Greece has submitted to the European Commission, at the beginning of May 2004, a revised notification of its data on deficit and debt for the year 2003. These revised data have been verified by Eurostat, the Statistical Office of the European Communities. These new data follow revisions of primary d ...
Impacts of high and volatile oil prices and policy choices
... Policy choices to reduce fiscal deficit and debt • By not fully passing on the world oil prices, governments risk incurring large fiscal costs and public debt • Integrate subsidies financed through off-budget funds into the budget process to make fiscal risks transparent ...
... Policy choices to reduce fiscal deficit and debt • By not fully passing on the world oil prices, governments risk incurring large fiscal costs and public debt • Integrate subsidies financed through off-budget funds into the budget process to make fiscal risks transparent ...
Aide Memoire - IMF Staff Visit to the Czech Republic
... The authorities have recognized the need for fiscal adjustment and have agreed on a path for lowering the deficit to 4 percent of GDP in 2006. We strongly support!these plans including pre-set expenditure ceilings. However, we believe that there is both the need and the scope to be more ambitious. S ...
... The authorities have recognized the need for fiscal adjustment and have agreed on a path for lowering the deficit to 4 percent of GDP in 2006. We strongly support!these plans including pre-set expenditure ceilings. However, we believe that there is both the need and the scope to be more ambitious. S ...
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.