Short-Run and Long-Run Effects of Fiscal Austerity
... that fiscal consolidations are expansionary? • It may identify as consolidations times when revenues rose because of asset price booms (which are also times when output tends to rise). • It may include consolidations that were followed by growth, but exclude consolidations that were followed by rece ...
... that fiscal consolidations are expansionary? • It may identify as consolidations times when revenues rose because of asset price booms (which are also times when output tends to rise). • It may include consolidations that were followed by growth, but exclude consolidations that were followed by rece ...
COUNCIL DECISION giving notice to Portugal to take
... The general government gross debt-to-GDP ratio has broadly stabilised during the period 2013-2015, reaching 129,2 % in 2013, 130,2 % in 2014 and 129,0 % in 2015. Taking into account significant debt-reducing stock-flow adjustments in 2016 and continued primary surpluses, the Commission 2016 spring f ...
... The general government gross debt-to-GDP ratio has broadly stabilised during the period 2013-2015, reaching 129,2 % in 2013, 130,2 % in 2014 and 129,0 % in 2015. Taking into account significant debt-reducing stock-flow adjustments in 2016 and continued primary surpluses, the Commission 2016 spring f ...
Recommendation for a COUNCIL IMPLEMENTING DECISION
... corporate income tax law, to be adopted as soon as a new government is formed, have been envisaged to make up for the loss in revenues of around 0.5% of GDP expected for 2016 following the changes made to the regulation of instalment payments (pagos fraccionados) of the corporate income tax, so as t ...
... corporate income tax law, to be adopted as soon as a new government is formed, have been envisaged to make up for the loss in revenues of around 0.5% of GDP expected for 2016 following the changes made to the regulation of instalment payments (pagos fraccionados) of the corporate income tax, so as t ...
EPS Session5b 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 ...
Bulgaria
... deficit was primarily due to one-off support to the financial sector and inclusion of BDIF in the general government sector was considered exceptional, Bulgaria has not been placed under any Excessive Deficit Procedure by the EC. Moreover, the government has rapidly taken actions for fiscal consolid ...
... deficit was primarily due to one-off support to the financial sector and inclusion of BDIF in the general government sector was considered exceptional, Bulgaria has not been placed under any Excessive Deficit Procedure by the EC. Moreover, the government has rapidly taken actions for fiscal consolid ...
Presentation
... to improve the effectiveness of government spending and fiscal policy for the economic performance. • Budget planning and projection is more accurate • Governance both in planning and implementation will be better ...
... to improve the effectiveness of government spending and fiscal policy for the economic performance. • Budget planning and projection is more accurate • Governance both in planning and implementation will be better ...
Sovereign Debtors in Distress
... One indication of improved EM creditworthiness: EM sovereigns used to have to pay higher interest rates than many US corporates (BB), but now pay less. ...
... One indication of improved EM creditworthiness: EM sovereigns used to have to pay higher interest rates than many US corporates (BB), but now pay less. ...
Martin Feldstein The Euro and the Stability Pact
... been paid and no one is expecting any penalty to be paid. So much for the treaty obligation. There is now a kind of gentlemen’s agreement among the Euro countries that the budget deficit limit will be redefined to focus on longer-term deficits rather than single years and on deficits that occur bec ...
... been paid and no one is expecting any penalty to be paid. So much for the treaty obligation. There is now a kind of gentlemen’s agreement among the Euro countries that the budget deficit limit will be redefined to focus on longer-term deficits rather than single years and on deficits that occur bec ...
What is at stake in fiscal rules
... Financial sanction applies only in case of non-respect of deficit rule, although peer pressures can be exerted in the form of policy recommendations on the basis of the Commission’s assessment. Escape clause Exceptional circumstances Transparency Member States are required to report twice a year ...
... Financial sanction applies only in case of non-respect of deficit rule, although peer pressures can be exerted in the form of policy recommendations on the basis of the Commission’s assessment. Escape clause Exceptional circumstances Transparency Member States are required to report twice a year ...
PowerPoint (tm) presentation
... energy to persuade Member States to undertake restrictive fiscal policies, to increase slowdowns to fulfil the Stability Pact. In November, it ended in a crisis between the Commission and some Member States. It makes no sense to argue on the level of public deficits when the problem is insufficien ...
... energy to persuade Member States to undertake restrictive fiscal policies, to increase slowdowns to fulfil the Stability Pact. In November, it ended in a crisis between the Commission and some Member States. It makes no sense to argue on the level of public deficits when the problem is insufficien ...
EU Economic Policy Surveillance of Member States
... In March 2000, the European Council at Lisbon adopted what was known as the Lisbon Strategy. Under this Strategy, the BEPGs should focus increasingly on the medium and long term implications of structural policies and on reforms aimed at promoting growth potential, employment and social cohesion, as ...
... In March 2000, the European Council at Lisbon adopted what was known as the Lisbon Strategy. Under this Strategy, the BEPGs should focus increasingly on the medium and long term implications of structural policies and on reforms aimed at promoting growth potential, employment and social cohesion, as ...
Pride and Prejudice
... seen in the numerous public budgets closed with a primary surplus. The Italian government is fully committed to modernizing and renewing the country, to reward these joint efforts, through a challenging program of reforms that are implemented promptly and with determination. With facts at hand, the ...
... seen in the numerous public budgets closed with a primary surplus. The Italian government is fully committed to modernizing and renewing the country, to reward these joint efforts, through a challenging program of reforms that are implemented promptly and with determination. With facts at hand, the ...
Europe`s fiscal reaction to the crisis
... at a very high cost for public finances. Also high structural deficit (blue) must be corrected. ...
... at a very high cost for public finances. Also high structural deficit (blue) must be corrected. ...
Edoardo Campanella 20 February 2011, VOX.EU
... the rest of Europe in the near future, is apparently simple and well-defined. It is enforced ex-post ...
... the rest of Europe in the near future, is apparently simple and well-defined. It is enforced ex-post ...
Fiscal Policy and the Stability and Growth Pact
... The Reform Proposals • On March 22-23, 2005, the European Council agreed to a reform of the Stability Pact • The main elements in this reform are the following: – First, countries with a low debt ratio (and a high growth potential) are allowed to maintain a deficit of 1% over the business cycle. Th ...
... The Reform Proposals • On March 22-23, 2005, the European Council agreed to a reform of the Stability Pact • The main elements in this reform are the following: – First, countries with a low debt ratio (and a high growth potential) are allowed to maintain a deficit of 1% over the business cycle. Th ...
Asia, the Financial Crisis, and Global Economic Governance Chair: Kevin M. Warsh
... ago that countries should pursue fiscal stimulus to cope with the recession and the financial crisis. The big issue I think now looming over the next two or three years is how we’ll disengage from these policies because we do have some very, very large structural deficits out there. The U.K. deficit ...
... ago that countries should pursue fiscal stimulus to cope with the recession and the financial crisis. The big issue I think now looming over the next two or three years is how we’ll disengage from these policies because we do have some very, very large structural deficits out there. The U.K. deficit ...
THE MAASTRICHT CRITERIA
... implementing. Structural reforms have clear upfront fiscal costs but potential long-term benefits that could justify temporarily higher deficits. ...
... implementing. Structural reforms have clear upfront fiscal costs but potential long-term benefits that could justify temporarily higher deficits. ...
Comments on Dos and Dont`s in Fiscal Packages - Inter
... (e.g., future increases in upper income tax rates); implementing policies that eliminate distortions (e.g., financial transaction taxes); increasing the scope of automatic stabilizers that, by their nature, are countercyclical and temporary; providing more robust medium-term fiscal frameworks; stren ...
... (e.g., future increases in upper income tax rates); implementing policies that eliminate distortions (e.g., financial transaction taxes); increasing the scope of automatic stabilizers that, by their nature, are countercyclical and temporary; providing more robust medium-term fiscal frameworks; stren ...
Slide 1
... • The Stability and Growth Pact (SGP): A set of requirements to maintain fiscal discipline in the EMU. • The SGP was initially proposed in the mid 1990’s by Theo Waigel (German finance minister) – Germany obsession: maintain low inflation • an important part of the German strong economy's performanc ...
... • The Stability and Growth Pact (SGP): A set of requirements to maintain fiscal discipline in the EMU. • The SGP was initially proposed in the mid 1990’s by Theo Waigel (German finance minister) – Germany obsession: maintain low inflation • an important part of the German strong economy's performanc ...
Fiscal Policy for Inclusive and Sustainable Development Anis Chowdhury
... policies 4.7% to 22% of GDP by 2030 Public investment needed to deliver policies to sustain growth and promote inclusive and sustainable development • In the case of China, the cost of the package is projected to reach 3.3% of GDP in 2020 and 5.2% of GDP by 2030 • The cost of the package is projec ...
... policies 4.7% to 22% of GDP by 2030 Public investment needed to deliver policies to sustain growth and promote inclusive and sustainable development • In the case of China, the cost of the package is projected to reach 3.3% of GDP in 2020 and 5.2% of GDP by 2030 • The cost of the package is projec ...
Fiscal Consolidation - wimdreesstichting.nl
... Previous backward-looking fiscal rules allowed Government to enter crisis with weak fiscal position. ...
... Previous backward-looking fiscal rules allowed Government to enter crisis with weak fiscal position. ...
NBER WORKING PAPER SERIES THE EURO AND THE STABILITY PACT Martin Feldstein
... deficit as “cyclical” only when unemployment has temporarily increased. By that standard, a country that has a 10 percent unemployment rate and that has had a 10 percent rate for the past three years does not have a cyclically elevated unemployment rate and is not in a temporary downturn. The entir ...
... deficit as “cyclical” only when unemployment has temporarily increased. By that standard, a country that has a 10 percent unemployment rate and that has had a 10 percent rate for the past three years does not have a cyclically elevated unemployment rate and is not in a temporary downturn. The entir ...
Il quadro economico globale
... This solution is not unlike that adopted by private firms in financial difficulty ...
... This solution is not unlike that adopted by private firms in financial difficulty ...
Raffles Junior College
... boost to AD eg through a larger budget deficit (given that Sg k value is small, a larger budget deficit would probably help). Suggest also what other possible fiscal measures government can include. Draw AD-AD diagram to show how a larger budget deficit could increase AD further to the right and hen ...
... boost to AD eg through a larger budget deficit (given that Sg k value is small, a larger budget deficit would probably help). Suggest also what other possible fiscal measures government can include. Draw AD-AD diagram to show how a larger budget deficit could increase AD further to the right and hen ...
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.