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... The continuing European sovereign debt crisis highlights the challenge a monetary union faces to ensure fiscal discipline and avoid speculative attacks in bond markets when credible union-wide fiscal institutional arrangements are lacking. While many countries suffer budgetary problems today, fiscal ...
... The continuing European sovereign debt crisis highlights the challenge a monetary union faces to ensure fiscal discipline and avoid speculative attacks in bond markets when credible union-wide fiscal institutional arrangements are lacking. While many countries suffer budgetary problems today, fiscal ...
Joining the European Monetary Union
... The original idea of a single European currency is associated with Napoleon IIIʹs imperial aspirations to unite Europe. But historical events (the lost war against Prussia, World War I, the contradictions caused by the Versailles Treaty, World War II, postwar problems) pos ...
... The original idea of a single European currency is associated with Napoleon IIIʹs imperial aspirations to unite Europe. But historical events (the lost war against Prussia, World War I, the contradictions caused by the Versailles Treaty, World War II, postwar problems) pos ...
The sustainability of public finances lies at the core of sound
... Explicit contingent liabilities constitute legal obligations of the government to undertake certain expenditures if a particular event occurs, and are not directly associated with any budgetary programme. “A government’s commitment to accept obligations contingent on future events amounts to a hidd ...
... Explicit contingent liabilities constitute legal obligations of the government to undertake certain expenditures if a particular event occurs, and are not directly associated with any budgetary programme. “A government’s commitment to accept obligations contingent on future events amounts to a hidd ...
FISCAL RULES 2014-03
... And what about the effects of fiscal rules on the stabilisation function of fiscal policy? The literature has hardly investigated this research question, but it offers a number of theoretical and empirical contributions on the effects of fiscal policy on macroeconomic volatility. For example, Gali ( ...
... And what about the effects of fiscal rules on the stabilisation function of fiscal policy? The literature has hardly investigated this research question, but it offers a number of theoretical and empirical contributions on the effects of fiscal policy on macroeconomic volatility. For example, Gali ( ...
Theory - Universität Bamberg
... other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of ...
... other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of ...
Rules-Based Fiscal Policy in France, Germany, Italy, and Spain
... labor force and therefore economic growth and the tax base. In practice, reducing public spending and government debt is politically difficult because the process inevitably leaves some groups worse off.1 To overcome these difficulties, an increasing number of countries have adopted formal fiscal ru ...
... labor force and therefore economic growth and the tax base. In practice, reducing public spending and government debt is politically difficult because the process inevitably leaves some groups worse off.1 To overcome these difficulties, an increasing number of countries have adopted formal fiscal ru ...
St Kitts and Nevis, Macroeconomic Framework
... public assets, which might involve a mix of land sales and the privatisation of publicly owned entities. If this approach is to be pursued, however, some early decisions would be needed to get the process started, and the programme should then be pursued with vigour. 17. After two-three difficult ye ...
... public assets, which might involve a mix of land sales and the privatisation of publicly owned entities. If this approach is to be pursued, however, some early decisions would be needed to get the process started, and the programme should then be pursued with vigour. 17. After two-three difficult ye ...
The Structural Balance Rule in Chile: Ten Years, Ten Lessons
... The second contributing factor, the Chilean rule, resulted from more than 50 years of effort to generate fiscal policy indicators that could differentiate between the impact of the business cycle on public finances and the effects of policy decisions made by authorities. The document that explains t ...
... The second contributing factor, the Chilean rule, resulted from more than 50 years of effort to generate fiscal policy indicators that could differentiate between the impact of the business cycle on public finances and the effects of policy decisions made by authorities. The document that explains t ...
STRUCTURAL REFORMS IN EMU AND THE ROLE OF
... Looking at the experience of other countries, it appears that significant structural reforms are often triggered by economic crises (the “back against the wall” hypothesis). Economic crises can promote reforms because bad economic conditions make it more obvious that the policies in place are no lo ...
... Looking at the experience of other countries, it appears that significant structural reforms are often triggered by economic crises (the “back against the wall” hypothesis). Economic crises can promote reforms because bad economic conditions make it more obvious that the policies in place are no lo ...
2. The relevance of structural reforms
... Looking at the experience of other countries, it appears that significant structural reforms are often triggered by economic crises (the “back against the wall” hypothesis). Economic crises can promote reforms because bad economic conditions make it more obvious that the policies in place are no lo ...
... Looking at the experience of other countries, it appears that significant structural reforms are often triggered by economic crises (the “back against the wall” hypothesis). Economic crises can promote reforms because bad economic conditions make it more obvious that the policies in place are no lo ...
Fiscal Multipliers and Beyond - Instituto de Estudios Fiscales
... The medium to longer-term benefits of well-designed fiscal consolidation are typically accompanied by short-term costs in the form of output losses. However, since sound gover nment finances are a prerequisite for price and macroeconomic stability and, consequently, for strengthening the conditions ...
... The medium to longer-term benefits of well-designed fiscal consolidation are typically accompanied by short-term costs in the form of output losses. However, since sound gover nment finances are a prerequisite for price and macroeconomic stability and, consequently, for strengthening the conditions ...
EVOLUTION AND RATIONALITY OF BUDGET INSTITUTIONS IN
... crisis, the first modern organization of the budgeting process did not appear until 189210, in the midst of a crisis provoked by large increases of the monetary base induced by the money financing of the budget.11 This first "organic budget law" (Ley 33, October of 1892) contained a balanced-budget ...
... crisis, the first modern organization of the budgeting process did not appear until 189210, in the midst of a crisis provoked by large increases of the monetary base induced by the money financing of the budget.11 This first "organic budget law" (Ley 33, October of 1892) contained a balanced-budget ...
fiscal space for what? analytical issues from a human
... ensure that fiscal restraint does not discourage growth in the aggregate public capital stock. While some allowances may be made for negative current deficits during a development transformation, with external grant financing making up the shortfall, the long-term fiscal framework must plan for all ...
... ensure that fiscal restraint does not discourage growth in the aggregate public capital stock. While some allowances may be made for negative current deficits during a development transformation, with external grant financing making up the shortfall, the long-term fiscal framework must plan for all ...
Fiscal Sustainability
... In any analysis of debt sustainability, the size of primary surpluses (revenues minus noninterest expenditures) is critical. As Section III shows, in order to satisfy its intertemporal budget constraint without default, the government must achieve primary surpluses whose present value will be suffic ...
... In any analysis of debt sustainability, the size of primary surpluses (revenues minus noninterest expenditures) is critical. As Section III shows, in order to satisfy its intertemporal budget constraint without default, the government must achieve primary surpluses whose present value will be suffic ...
IOSR Journal of Business and Management (IOSR-JBM)
... Economic theory posits that government’s annual budget can be balanced when projected revenue equals projected expenditure, surplus when projected revenue exceeds projected expenditure, and in deficit when projected revenue is less than projected revenue (Dalyop, 2010). Before the Great Depression o ...
... Economic theory posits that government’s annual budget can be balanced when projected revenue equals projected expenditure, surplus when projected revenue exceeds projected expenditure, and in deficit when projected revenue is less than projected revenue (Dalyop, 2010). Before the Great Depression o ...
EUCO 37/13 EUROPEA COU CIL Brussels, 8 February 2013 EUCO
... particular in times of heavy constraint on the national budgets. All funding instruments should, therefore, be spent as effectively as possible. Efforts towards improving the quality of spending of the Union's funds need to include, inter alia, the better governance of the policies including certain ...
... particular in times of heavy constraint on the national budgets. All funding instruments should, therefore, be spent as effectively as possible. Efforts towards improving the quality of spending of the Union's funds need to include, inter alia, the better governance of the policies including certain ...
Fiscal multipliers in deep economic recessions and the
... In Greece, an internal devaluation programme has been in place since May 2010, when the country signed its first bailout programme with its euro area partners and the IMF. A second support programme was agreed in early 2012, aiming to provide coverage of the government borrowing need for the period ...
... In Greece, an internal devaluation programme has been in place since May 2010, when the country signed its first bailout programme with its euro area partners and the IMF. A second support programme was agreed in early 2012, aiming to provide coverage of the government borrowing need for the period ...
NBER WORKING PAPER SERIES Takero Doi Takeo Hoshi
... The gross debt to GDP ratios for the eight countries are shown in Figure 3. From 1999 on, Japan has the highest debt to GDP ratio among these countries. The ratio exceeded 200% after 2010. In terms of net debt, which subtracts the financial assets that the government sector owns from the gross debt ...
... The gross debt to GDP ratios for the eight countries are shown in Figure 3. From 1999 on, Japan has the highest debt to GDP ratio among these countries. The ratio exceeded 200% after 2010. In terms of net debt, which subtracts the financial assets that the government sector owns from the gross debt ...
JAPANESE GOVERNMENT DEBT AND SUSTAINABILITY OF
... The gross debt to GDP ratios for the eight countries are shown in Figure 3. From 1999 on, Japan has the highest debt to GDP ratio among these countries. The ratio exceeded 200% after 2010. In terms of net debt, which subtracts the financial assets that the government sector owns from the gross debt ...
... The gross debt to GDP ratios for the eight countries are shown in Figure 3. From 1999 on, Japan has the highest debt to GDP ratio among these countries. The ratio exceeded 200% after 2010. In terms of net debt, which subtracts the financial assets that the government sector owns from the gross debt ...
Towards a Balanced Policy Mix under EMU: Co
... Third, the interest rate cut can best be understood by taking the business cycle stance in individual EMU countries (here: Germany and Italy) instead of the aggregate Euroland data into account. By this, the ECB -against its initial vowsimplicitly looked at national situations. This makes sense if o ...
... Third, the interest rate cut can best be understood by taking the business cycle stance in individual EMU countries (here: Germany and Italy) instead of the aggregate Euroland data into account. By this, the ECB -against its initial vowsimplicitly looked at national situations. This makes sense if o ...
CEEC – Transition and Enlargement
... other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of ...
... other public authorities, other bodies governed by public law, or public undertakings of Member States shall be prohibited, as shall the purchase directly from them by the ECB or national central banks of ...
United Republic of Tanzania: Fifth Review under teh Policy Support
... member's policies (see http://www.imf.org/external/np/exr/facts/psi.htm). Details on Tanzania’s PSI program are available at www.imf.org/tanzania. ...
... member's policies (see http://www.imf.org/external/np/exr/facts/psi.htm). Details on Tanzania’s PSI program are available at www.imf.org/tanzania. ...
analysing uk fiscal policy - UK Government Web Archive
... This prudent approach is implemented, among other things, by adopting a cautious assumption about the economy's trend growth rate. The Government's economic policies are designed to raise this growth rate beyond the level assumed for fiscal policy purposes. For the purposes of fiscal planning, howev ...
... This prudent approach is implemented, among other things, by adopting a cautious assumption about the economy's trend growth rate. The Government's economic policies are designed to raise this growth rate beyond the level assumed for fiscal policy purposes. For the purposes of fiscal planning, howev ...
Public Finances in EMU - 2014 - European Commission
... the commendably large consolidation efforts made in the past. As shown in Part I this has allowed Member States to slow the pace of adjustment. The aggregate fiscal stance is now expected to be broadly neutral in 2014 and 2015, both in the EU and the euro area. This will reduce one of the drags on g ...
... the commendably large consolidation efforts made in the past. As shown in Part I this has allowed Member States to slow the pace of adjustment. The aggregate fiscal stance is now expected to be broadly neutral in 2014 and 2015, both in the EU and the euro area. This will reduce one of the drags on g ...
An Instrumental variable approach to measures the fiscal multiplier
... followed by the conclusions in section five. II. Measuring the fiscal multiplier Measuring the size of the fiscal multiplier in empirical studies is difficult because fiscal variables are endogenous to output fluctuations. Output levels are determined in part by fiscal variables, yet at the same tim ...
... followed by the conclusions in section five. II. Measuring the fiscal multiplier Measuring the size of the fiscal multiplier in empirical studies is difficult because fiscal variables are endogenous to output fluctuations. Output levels are determined in part by fiscal variables, yet at the same tim ...
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.