NBER WORKING PAPER SERIES AN EVALUATION OF THEORY AND EVIDENCE B. Douglas Bernheim
... equivalence, it is essential to distinguish between the short run effects of government borrowing (primarily the potential for stimulating aggregate demand) and the long run effects (primarily the potential for depressing capital accumulation). I argue that the theoretical case for long run neutrali ...
... equivalence, it is essential to distinguish between the short run effects of government borrowing (primarily the potential for stimulating aggregate demand) and the long run effects (primarily the potential for depressing capital accumulation). I argue that the theoretical case for long run neutrali ...
The sustainability of fiscal policy in Italy: a long
... about 82 %, with two large peaks observed in late 19th and 20th centuries: the burden of public debt in Italy observed in the 1990s was comparable to the levels reached during the last two decades of the 19th century: from 1993 to 2010, the debt-to-GDP ratio was on average about 107 %, almost as hig ...
... about 82 %, with two large peaks observed in late 19th and 20th centuries: the burden of public debt in Italy observed in the 1990s was comparable to the levels reached during the last two decades of the 19th century: from 1993 to 2010, the debt-to-GDP ratio was on average about 107 %, almost as hig ...
Structural and Cyclical Factors of Greece`s Current Account
... Cyclical CA balances = Actual CA balances – Structural balances – Other temporary factors Figures 1 and 2 present the estimated components together with the actual current account. During the whole period, all five cyclical current account estimates are above the actual value approaching it during t ...
... Cyclical CA balances = Actual CA balances – Structural balances – Other temporary factors Figures 1 and 2 present the estimated components together with the actual current account. During the whole period, all five cyclical current account estimates are above the actual value approaching it during t ...
Chapter 12 - Dr. George Fahmy
... A federal deficit exists when government outlays exceed revenues. Fig. 12-6 presents the U.S. federal deficit for the years 1965 to 1993 by relating the deficit to GDP. Note the increases in the federal deficit that occurred in the 1980s; this has become an important issue in the 1990s. A structural ...
... A federal deficit exists when government outlays exceed revenues. Fig. 12-6 presents the U.S. federal deficit for the years 1965 to 1993 by relating the deficit to GDP. Note the increases in the federal deficit that occurred in the 1980s; this has become an important issue in the 1990s. A structural ...
Crowding Out and Its Critics
... discussion.5 In particular, Friedman pointed out the necessity of distinguishing between initial and subsequent effects of fiscal actions. According to Friedman, an “expansionary” fiscal action might first be reflected in a rise in output, but the financing of the deficit would set in motion contrac ...
... discussion.5 In particular, Friedman pointed out the necessity of distinguishing between initial and subsequent effects of fiscal actions. According to Friedman, an “expansionary” fiscal action might first be reflected in a rise in output, but the financing of the deficit would set in motion contrac ...
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... current account deficit VAR models and data Ogawa and Kudo (2007) investigated how the US dollar depreciation would affect the US current account deficit. In this context we simulated how much depreciation of the US dollar was needed for current account sustainability, given the estimated parameters ...
... current account deficit VAR models and data Ogawa and Kudo (2007) investigated how the US dollar depreciation would affect the US current account deficit. In this context we simulated how much depreciation of the US dollar was needed for current account sustainability, given the estimated parameters ...
FISCAL POLICY IN SWEDEN
... not unreasonably high. The effect is estimated there as the actual unemployment benefit for an unemployed person. However, it is probable that other transfer payments in the form of housing allowances and social welfare payments also decrease when unemployment decline. Taxes seem to be strongly proc ...
... not unreasonably high. The effect is estimated there as the actual unemployment benefit for an unemployed person. However, it is probable that other transfer payments in the form of housing allowances and social welfare payments also decrease when unemployment decline. Taxes seem to be strongly proc ...
NBER WORXING PAPER SERIES CURRENT ACCOUNT AND BUDGET DEFICITS IN AN
... not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3) below) domestic bonds issued by the government and held by the private sector would cancel out leaving the budget constrain ...
... not issue domestic bonds. This simplification does not change any result of the model because in the consolidation of the budget constraint for the entire economy (equation (3) below) domestic bonds issued by the government and held by the private sector would cancel out leaving the budget constrain ...
BUDGET DEFICITS IN CHINA: CALCULATIONS, CAUSES, AND
... If judged from standard international practice, in China, "soft" deficits had also existed, although they were not reported by the government. Those deficits were "soft" because they were completely financed by the government's domestic and foreign debts, and exert less inflationary pressure on the ...
... If judged from standard international practice, in China, "soft" deficits had also existed, although they were not reported by the government. Those deficits were "soft" because they were completely financed by the government's domestic and foreign debts, and exert less inflationary pressure on the ...
Chapter 5 D : M
... Three key fiscal parameters - revenue, fiscal and primary deficits measured relative to GDPindicate the extent of overall fiscal imbalances in the Finances of the Union or State Government during a specified period. The fiscal and revenue deficits relative to GDP as per Union Finance Accounts for 20 ...
... Three key fiscal parameters - revenue, fiscal and primary deficits measured relative to GDPindicate the extent of overall fiscal imbalances in the Finances of the Union or State Government during a specified period. The fiscal and revenue deficits relative to GDP as per Union Finance Accounts for 20 ...
Do Budget Deficits Crowd out Private Investment? An
... In 2007 there was an increase in the budget surplus to 0.7% of GDP but on the other hand interest rates on 0-3 year bonds increased significantly to 10.56% and those on government bonds of 10 years and above increased to 8.29%. The rise in interest rates contradicted with the economic activities as ...
... In 2007 there was an increase in the budget surplus to 0.7% of GDP but on the other hand interest rates on 0-3 year bonds increased significantly to 10.56% and those on government bonds of 10 years and above increased to 8.29%. The rise in interest rates contradicted with the economic activities as ...
Is Fiscal Policy Contracyclical in India?
... Apart from the developed countries, in developing countries also, budget deficit-GDP ratio increased significantly during the post world war period. However, theoretical literature expressed contrasting views on the relationship between budget deficit and economic activity. The Ricardian Equivalence ...
... Apart from the developed countries, in developing countries also, budget deficit-GDP ratio increased significantly during the post world war period. However, theoretical literature expressed contrasting views on the relationship between budget deficit and economic activity. The Ricardian Equivalence ...
B g
... taxes with a unit of real budget deficit, households know that the present value of next year’s real taxes will rise by one unit. Thus, the real budget deficit is the same as a real tax in terms of the overall present value of real taxes. This finding is the simplest version of the Ricardian equival ...
... taxes with a unit of real budget deficit, households know that the present value of next year’s real taxes will rise by one unit. Thus, the real budget deficit is the same as a real tax in terms of the overall present value of real taxes. This finding is the simplest version of the Ricardian equival ...
Chapter 15
... – There is a lack of flexibility, because much of government spending is committed years in advance – There are long time lags, because the political process takes time to make changes ...
... – There is a lack of flexibility, because much of government spending is committed years in advance – There are long time lags, because the political process takes time to make changes ...
Chapter 15 Chapter Outline
... – Automatic stabilizers and the full-employment deficit • Automatic stabilizers cause fiscal policy to be countercyclical by changing government spending or taxes automatically • One example is unemployment insurance, which causes transfers to rise in recessions • The most important automatic stabil ...
... – Automatic stabilizers and the full-employment deficit • Automatic stabilizers cause fiscal policy to be countercyclical by changing government spending or taxes automatically • One example is unemployment insurance, which causes transfers to rise in recessions • The most important automatic stabil ...
Chapter 2: Review of Literature
... factors. Internal factors include, among others, the government budget deficit, monetary policy and structural regime changes (revolution, political regime changes, etc.). External factors include terms of trade and foreign interest rate, as well as, the attitude of the rest of the world (sanctions, ...
... factors. Internal factors include, among others, the government budget deficit, monetary policy and structural regime changes (revolution, political regime changes, etc.). External factors include terms of trade and foreign interest rate, as well as, the attitude of the rest of the world (sanctions, ...
Taylor Economics Chapter 33 Test Bank
... 36. Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions, which of the following is most likely? A. reduced government borrowing to avoid crowding out private investment B. difficulty managing public investment so it’s done ...
... 36. Because of the difference between the discipline imposed by market competition and the discipline imposed by political decisions, which of the following is most likely? A. reduced government borrowing to avoid crowding out private investment B. difficulty managing public investment so it’s done ...
No 15
... discussion of the instruments utilized currently for fiscal deficit reduction. It was possible to show that the government resorts chiefly to public investment (Ip) cuts and tax increases to make fiscal adjustments. In doing so, the government was right for public investment on the short run but wro ...
... discussion of the instruments utilized currently for fiscal deficit reduction. It was possible to show that the government resorts chiefly to public investment (Ip) cuts and tax increases to make fiscal adjustments. In doing so, the government was right for public investment on the short run but wro ...
Budget Paper No. 3: Federal Financial Relations 2017-18
... Note: Consolidated NFPS numbers beyond 2017-18 have not been calculated as Commonwealth data is not available for the PNFC sector. ‘Other NFPS’ includes Local Governments, the multi-jurisdictional sector and adjustments for transfers between jurisdictions. Source: ABS cat. no. 5512.0, most recent St ...
... Note: Consolidated NFPS numbers beyond 2017-18 have not been calculated as Commonwealth data is not available for the PNFC sector. ‘Other NFPS’ includes Local Governments, the multi-jurisdictional sector and adjustments for transfers between jurisdictions. Source: ABS cat. no. 5512.0, most recent St ...
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... The programme foresees a continuation of the front-loaded consolidation (iii) In view of the level of debt and the increase in age-related expenditure, strategy, with another important adjustment in 2009 to 2.6% of GDP, and further improve the long-term sustainability of public finances; continue to ...
... The programme foresees a continuation of the front-loaded consolidation (iii) In view of the level of debt and the increase in age-related expenditure, strategy, with another important adjustment in 2009 to 2.6% of GDP, and further improve the long-term sustainability of public finances; continue to ...
What Do Budget Deficits Do? - Federal Reserve Bank of Kansas City
... forced to cut transfer payments or other spending to free up funds to pay the debt. By how much must taxes rise or spending fall to pay off a country’s debt? This question is more tricky than it seems, for the answer depends on both policy choices and luck. One surprising fact is that the government ...
... forced to cut transfer payments or other spending to free up funds to pay the debt. By how much must taxes rise or spending fall to pay off a country’s debt? This question is more tricky than it seems, for the answer depends on both policy choices and luck. One surprising fact is that the government ...
Effects Of Budget Deficit On Economic Growth In Kenya
... Each and every government undertake numerous activities and pursue certain policies which have implications in terms of revenue and expenditure. The government of Kenya describes its plans, strategies and policies that it wants to undertake during the fiscal year in the Budget Policy Statement (BPS) ...
... Each and every government undertake numerous activities and pursue certain policies which have implications in terms of revenue and expenditure. The government of Kenya describes its plans, strategies and policies that it wants to undertake during the fiscal year in the Budget Policy Statement (BPS) ...
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... (Evans, 1985, 1987b; Fackler and McMillin, 1989) have supported the proposition. Fiscal deficits can also have impact on other macroeconomic variables such as inflation and money supply. If an increase in aggregate demand is a result of fiscal deficit, the price levels are likely to rise and consequ ...
... (Evans, 1985, 1987b; Fackler and McMillin, 1989) have supported the proposition. Fiscal deficits can also have impact on other macroeconomic variables such as inflation and money supply. If an increase in aggregate demand is a result of fiscal deficit, the price levels are likely to rise and consequ ...
Chapter 14 - The Citadel
... outside the United States increases. • Foreign residents, businesses and governments hold nearly 50% of the net public debt. • Thus, we do not owe the debt just to ourselves. Copyright © 2008 Pearson Addison Wesley. All rights reserved. ...
... outside the United States increases. • Foreign residents, businesses and governments hold nearly 50% of the net public debt. • Thus, we do not owe the debt just to ourselves. Copyright © 2008 Pearson Addison Wesley. All rights reserved. ...
WHAT
... This paper was prepared for the Federal Reserve Bank of Kansas City Symposium on Budget Deficits and Debt, in Jackson Hole, Wyoming. on August 31 - September 2, 1995. We arc Foundation for grateful to Michael Rashes for research assisthnce and to the National Science financial support. This paper is ...
... This paper was prepared for the Federal Reserve Bank of Kansas City Symposium on Budget Deficits and Debt, in Jackson Hole, Wyoming. on August 31 - September 2, 1995. We arc Foundation for grateful to Michael Rashes for research assisthnce and to the National Science financial support. This paper is ...