Introduction
... The Single European Act ascribes to the Cohesion Policy the aim at achieving “greater economic and social cohesion and reducing disparities within the European Union (EU, 1997)”. The need for European Regional development policies rely upon the view that market mechanisms cannot induce economic conv ...
... The Single European Act ascribes to the Cohesion Policy the aim at achieving “greater economic and social cohesion and reducing disparities within the European Union (EU, 1997)”. The need for European Regional development policies rely upon the view that market mechanisms cannot induce economic conv ...
Macroeconomic and Welfare Costs of US Fiscal Imbalances
... the medium-term to long-term. In this sense, we explicitly leave aside some questions on fiscal consolidation that, while very relevant for the short-run, cannot be appropriately tackled in this framework. One example is assessing the effects of back-loading the pace of consolidation in the near ter ...
... the medium-term to long-term. In this sense, we explicitly leave aside some questions on fiscal consolidation that, while very relevant for the short-run, cannot be appropriately tackled in this framework. One example is assessing the effects of back-loading the pace of consolidation in the near ter ...
Reforming the Fiscal Framework. The Case of Sweden 1973-2013
... Fiscal policy was focused on fiscal consolidation after the acute crisis of the 1990s and the large budget deficits following in its wake. Shortly after the crisis, the foundations of a new fiscal framework were established. Balancing the budget became the primary target for fiscal policy against th ...
... Fiscal policy was focused on fiscal consolidation after the acute crisis of the 1990s and the large budget deficits following in its wake. Shortly after the crisis, the foundations of a new fiscal framework were established. Balancing the budget became the primary target for fiscal policy against th ...
how interdependent are eastern european economies and
... the artificially calculated aggregate currency of the CEE-5.1 We use this dataset to analyze the effects of shocks in output and in interest rates on the corresponding other region as well as the effects of shocks in the exchange rate and in relative prices on both regions. As a robustness check, we re ...
... the artificially calculated aggregate currency of the CEE-5.1 We use this dataset to analyze the effects of shocks in output and in interest rates on the corresponding other region as well as the effects of shocks in the exchange rate and in relative prices on both regions. As a robustness check, we re ...
ECB
... studies have found evidence that positive short-term multipliers may decline or even turn negative in the presence of high debt ratios.14 On the other hand, when several countries facing fiscal problems consolidate simultaneously, the overall negative impact on the domestic economy may be compounded ...
... studies have found evidence that positive short-term multipliers may decline or even turn negative in the presence of high debt ratios.14 On the other hand, when several countries facing fiscal problems consolidate simultaneously, the overall negative impact on the domestic economy may be compounded ...
Validity of Twin Deficit Hypothesis: Evidence from Asian Developing
... This paper aims to empirically test the validity of twin deficit hypothesis in 14 developing Asian countries. Advanced panel data models were estimated to investigate the extent of influences of government budget deficits on the countries' current account deficits covering 22 years from 1990 to 2012 ...
... This paper aims to empirically test the validity of twin deficit hypothesis in 14 developing Asian countries. Advanced panel data models were estimated to investigate the extent of influences of government budget deficits on the countries' current account deficits covering 22 years from 1990 to 2012 ...
Cyclical fiscal policy in developing countries: the case of Africa
... Against this background, the paper looks at cyclical fiscal policy in an African perspective. Its value added relative to the existing literature is as follows. First, in assessing whether fiscal policy has Keynesian or non-Keynesian effects, the paper provides a systematic structural comparison of ...
... Against this background, the paper looks at cyclical fiscal policy in an African perspective. Its value added relative to the existing literature is as follows. First, in assessing whether fiscal policy has Keynesian or non-Keynesian effects, the paper provides a systematic structural comparison of ...
Fiscal Policy and Macroeconomic Stability: New Evidence and
... industrial and developing countries for which reasonably long time series exist for fiscal data covering the general government. Second, we take into account the potentially destabilizing impact of fiscal policy, as public finances are used to attain other goals than macroeconomic stability. Should ...
... industrial and developing countries for which reasonably long time series exist for fiscal data covering the general government. Second, we take into account the potentially destabilizing impact of fiscal policy, as public finances are used to attain other goals than macroeconomic stability. Should ...
Official PDF , 45 pages
... cycle. In that context, a significant number of authors have documented a more pro-cyclical behavior of fiscal policy in developing countries as opposed to industrial countries. 1 That is, developing countries tend to orient government consumption and investment in the same direction as that of the ...
... cycle. In that context, a significant number of authors have documented a more pro-cyclical behavior of fiscal policy in developing countries as opposed to industrial countries. 1 That is, developing countries tend to orient government consumption and investment in the same direction as that of the ...
Demand Effects of Fiscal Policy since 2008
... therefore include a share of Ricardian agents and finance-constrained consumers whose consumption depends on current income (Gali et al., 2007). Although the government spending multiplier in NK-DSGE models is positive and can be quite large, it is not long lasting because of neoclassical foundation ...
... therefore include a share of Ricardian agents and finance-constrained consumers whose consumption depends on current income (Gali et al., 2007). Although the government spending multiplier in NK-DSGE models is positive and can be quite large, it is not long lasting because of neoclassical foundation ...
Cash Reserves Balance and Replenishment Policy
... responsible fiscal management. The purpose of this policy is to define the level of cash to be held in each fund. It is essential that governments have a level of savings sufficient for operating cash flow, to provide a backup for revenue shortfalls, to mitigate against uncontrollable costs and a va ...
... responsible fiscal management. The purpose of this policy is to define the level of cash to be held in each fund. It is essential that governments have a level of savings sufficient for operating cash flow, to provide a backup for revenue shortfalls, to mitigate against uncontrollable costs and a va ...
LCcarL189_en.pdf
... Direct Investment (FDI) and external financing. The intensity of these effects will depend, among other things, on the fiscal position, the external gap, and the level of public debt and international reserves. These issues, together with policy responses devised by Caribbean countries to tackle the ...
... Direct Investment (FDI) and external financing. The intensity of these effects will depend, among other things, on the fiscal position, the external gap, and the level of public debt and international reserves. These issues, together with policy responses devised by Caribbean countries to tackle the ...
Lost in Fiscal Space: Some Simple Analytics of
... account of intertemporal optimization, but work only with a few reduced-form aggregate relationships. Somewhat similar conclusions are reached through an explicit intertemporal optimization framework by Woodford (2001), as discussed in the third section of the paper. Nonetheless, we believe there is ...
... account of intertemporal optimization, but work only with a few reduced-form aggregate relationships. Somewhat similar conclusions are reached through an explicit intertemporal optimization framework by Woodford (2001), as discussed in the third section of the paper. Nonetheless, we believe there is ...
Fiscal data revisions in Europe - ECB
... The international press has been echoing, especially since October 2009, the strong and recurrent revisions to the Greek fiscal figures. Indeed, even though Greek data have been under scrutiny by the European Commission (Eurostat) at least since the early 2000s, renewed attention is being paid to th ...
... The international press has been echoing, especially since October 2009, the strong and recurrent revisions to the Greek fiscal figures. Indeed, even though Greek data have been under scrutiny by the European Commission (Eurostat) at least since the early 2000s, renewed attention is being paid to th ...
Chapter 5 D : M
... revenue receipts and revenue expenditure during the current year again exhibited a deceleration trend in revenue deficit. Buoyant gross tax revenue as well as non tax revenue, which have increased by 25.27 and 20.83 per cent, respectively, in 2007-08 over the previous year led to an increase of 23.6 ...
... revenue receipts and revenue expenditure during the current year again exhibited a deceleration trend in revenue deficit. Buoyant gross tax revenue as well as non tax revenue, which have increased by 25.27 and 20.83 per cent, respectively, in 2007-08 over the previous year led to an increase of 23.6 ...
chapter summary
... 1. This chapter considers the effects of fiscal policy on equilibrium income and employment. It begins with a discussion of multipliers and ends with a clear discussion of the aggregate demand curve and fiscal policy. Students should understand that there is a continuity to the presentations of the ...
... 1. This chapter considers the effects of fiscal policy on equilibrium income and employment. It begins with a discussion of multipliers and ends with a clear discussion of the aggregate demand curve and fiscal policy. Students should understand that there is a continuity to the presentations of the ...
Fiscal Expansions and Adjustments in OECD Countries by Alberto
... Buiter a "standard" cyclical adjustment of the deficit measure would not be enough. 2 In our view, a useful measure of the fiscal stance must be simple, even at the cost of ignoring relatively important considerations. Fortunately, for our purposes, simplicity does not come at a high price. First, ...
... Buiter a "standard" cyclical adjustment of the deficit measure would not be enough. 2 In our view, a useful measure of the fiscal stance must be simple, even at the cost of ignoring relatively important considerations. Fortunately, for our purposes, simplicity does not come at a high price. First, ...
Fiscal Rules, Discretionary Fiscal Policy and Macroeconomic
... Editorial Office, Dept of Economics, Warwick University, Coventry CV4 7AL, UK ...
... Editorial Office, Dept of Economics, Warwick University, Coventry CV4 7AL, UK ...
Country Heterogeneity and the International Evidence on the
... transmission of fiscal shocks and one in how fiscal shocks are generated. The first is specific to the analysis of fiscal policy: countries are heterogeneous in their fiscal reaction functions and therefore in their debt dynamics. Following a fiscal shock different countries will aim at stabilizing t ...
... transmission of fiscal shocks and one in how fiscal shocks are generated. The first is specific to the analysis of fiscal policy: countries are heterogeneous in their fiscal reaction functions and therefore in their debt dynamics. Following a fiscal shock different countries will aim at stabilizing t ...
Fiscal stimulus in times of high debt - ECB
... in Bayesian fashion for 17 European countries. This framework enables us to examine the channels through which debt may be detrimental for growth as all coefficient parameters are allowed to change with the debt-to-GDP ratio. For example, this allows for multipliers which are smaller or larger than ...
... in Bayesian fashion for 17 European countries. This framework enables us to examine the channels through which debt may be detrimental for growth as all coefficient parameters are allowed to change with the debt-to-GDP ratio. For example, this allows for multipliers which are smaller or larger than ...
The Theoretical Weaknesses of the Expansionary Austerity Doctrine
... discretionary expansionary or restrictive fiscal policies. The authors then use the identified episodes of fiscal adjustments to econometrically explain cross-country growth performances and public debt dynamics in the years following the launch of discretionary fiscal packages. Criticisms to such a ...
... discretionary expansionary or restrictive fiscal policies. The authors then use the identified episodes of fiscal adjustments to econometrically explain cross-country growth performances and public debt dynamics in the years following the launch of discretionary fiscal packages. Criticisms to such a ...
This PDF is a selection from a published volume from... National Bureau of Economic Research
... criticized for the absence of economics. Hence, their proper implementation should be based on theoretical reasoning. Our paper positions itself in the second category. This is because the re2. Some literature focuses on price variables (such as interest, GDP deflator, and exchange rates) rather tha ...
... criticized for the absence of economics. Hence, their proper implementation should be based on theoretical reasoning. Our paper positions itself in the second category. This is because the re2. Some literature focuses on price variables (such as interest, GDP deflator, and exchange rates) rather tha ...
No. 537 - Banco de la República
... The budget deficit and its subsequent financing through money creation (seigniorage) are regarded as exogenous to the monetary authority. Hence, money growth would be dominated by the government’s financing requirements, and the price level increases as result of that monetary expansion. ...
... The budget deficit and its subsequent financing through money creation (seigniorage) are regarded as exogenous to the monetary authority. Hence, money growth would be dominated by the government’s financing requirements, and the price level increases as result of that monetary expansion. ...
Debt sustainability and economic convergence of euro
... economic convergence in the Euro area. Is there a trade-off between the two objectives? Does the current fiscal framework improve or compromise this trade-off? In the light of the recent changes in the Stability and Growth Pact, should the fiscal framework be amended in order to improve its effectiv ...
... economic convergence in the Euro area. Is there a trade-off between the two objectives? Does the current fiscal framework improve or compromise this trade-off? In the light of the recent changes in the Stability and Growth Pact, should the fiscal framework be amended in order to improve its effectiv ...
Cross-Country Spillover Effects and Fiscal Policy
... Delors report made explicit reference to it. It was emphasised that the single market, by strengthening economic interdependence between member states, would amplify the cross-border effects of developments originating in each member country. “It will therefore, necessitate a more effective coordina ...
... Delors report made explicit reference to it. It was emphasised that the single market, by strengthening economic interdependence between member states, would amplify the cross-border effects of developments originating in each member country. “It will therefore, necessitate a more effective coordina ...
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.