Fiscal Policy: A Summing Up
... To avoid a future increase in debt year 1,the government must run a primary surplus equal to real interest payments on the existing debt. It must do so in following years as well; each year The primary surplus must be sufficient to cover interest payments, leaving the debt level unchanged. The path ...
... To avoid a future increase in debt year 1,the government must run a primary surplus equal to real interest payments on the existing debt. It must do so in following years as well; each year The primary surplus must be sufficient to cover interest payments, leaving the debt level unchanged. The path ...
Coyote Economist Panel Discussion on The Recession News.from.the.Department.of.Economics,.CSUSB
... low In the extreme, this argument claims that the reduction in private spending will counterbalance the increase in public spending, negating thereby the stimulative impact of the deficit. The only time such an argument might have merit would be in the context of full employment, in which case defic ...
... low In the extreme, this argument claims that the reduction in private spending will counterbalance the increase in public spending, negating thereby the stimulative impact of the deficit. The only time such an argument might have merit would be in the context of full employment, in which case defic ...
NBER WORKING PAPER SERIES ESTIMATED MACROECONOMIC EFFECTS OF DEFICIT TARGETING
... the sector. The "government budget constraint" is the equation that relates the level of savings of the government to changes in its assets and ...
... the sector. The "government budget constraint" is the equation that relates the level of savings of the government to changes in its assets and ...
Financial Crises, Stabilization, and Deficits
... But because the economy’s response to monetary changes is probably slower than its response to changes in fiscal policy, tax and spending changes may also play a useful role in macroeconomic ...
... But because the economy’s response to monetary changes is probably slower than its response to changes in fiscal policy, tax and spending changes may also play a useful role in macroeconomic ...
This PDF is a selection from a published volume from... Economic Research Volume Title: NBER Macroeconomics Annual 2007, Volume 22
... nell (1998): when multiple for ...
... nell (1998): when multiple for ...
fiscal theory of price level: a panel data analysis for selected saarc
... inflation differential while the role of productivity shocks and expenditure shocks don’t contradict with the given results. Ersel and Ozatay (2007) indicate that coordination of fiscal and monetary policies is essential for obtaining inflation targeting and desired results. Bassetto (2008) suggest ...
... inflation differential while the role of productivity shocks and expenditure shocks don’t contradict with the given results. Ersel and Ozatay (2007) indicate that coordination of fiscal and monetary policies is essential for obtaining inflation targeting and desired results. Bassetto (2008) suggest ...
DOC - Europa.eu
... Stability and Growth Pact. The added value of this exercise is the increased transparency that it introduces to the budgetary procedure. It gives all actors concerned in the national budgetary process the information they need before making their final decision on the budget. Economic and budgetary ...
... Stability and Growth Pact. The added value of this exercise is the increased transparency that it introduces to the budgetary procedure. It gives all actors concerned in the national budgetary process the information they need before making their final decision on the budget. Economic and budgetary ...
Electoral Cycles and Fiscal Policy in India
... interest payments relative to GDP kept growing following a steady rise in the debt-GDP ratio. Eventually, primary expenditures relative to GDP started falling. When interest payments become very large, government has less flexibility to use additional fiscal deficit to counter cyclical changes in th ...
... interest payments relative to GDP kept growing following a steady rise in the debt-GDP ratio. Eventually, primary expenditures relative to GDP started falling. When interest payments become very large, government has less flexibility to use additional fiscal deficit to counter cyclical changes in th ...
NBER WORKING PAPER SERIES LOCAL DEFICITS AND LOCAL JOBS:
... urban CPI for those years for which state specific indices are not available. ...
... urban CPI for those years for which state specific indices are not available. ...
NEER WORKING PAPER SERIES THE AMERICAN FISCAL DEFICIT: FACTS AND EFFECTS Herschel Grossman
... power for fiscal irresponsibility. In 1976, candidate Carter attacked President Ford for allowing large fiscal deficits and asserted that a Carter Administration would balance the Federal In 1980, candidate Reagan attacked President Carter for budget. allowing large fiscal deficits and asserted that ...
... power for fiscal irresponsibility. In 1976, candidate Carter attacked President Ford for allowing large fiscal deficits and asserted that a Carter Administration would balance the Federal In 1980, candidate Reagan attacked President Carter for budget. allowing large fiscal deficits and asserted that ...
Print this article
... occasionally been made that budget deficits may lead to partial ‘crowding out’ (Carlson and Spencer 1975, Cebula 1985). It is worth noting that a large proportion of this literature ignores net international capital flows, thereby neglecting the potential interest-rate impact of such flows and, espe ...
... occasionally been made that budget deficits may lead to partial ‘crowding out’ (Carlson and Spencer 1975, Cebula 1985). It is worth noting that a large proportion of this literature ignores net international capital flows, thereby neglecting the potential interest-rate impact of such flows and, espe ...
Sec 4, Mod 16 National Income Accounting
... Policy makers assume neither that markets always behave rationally nor that they can outsmart them. *Krugman ...
... Policy makers assume neither that markets always behave rationally nor that they can outsmart them. *Krugman ...
Chap 31
... C) lower; lower D) None of the above answers is correct because the interest rate has nothing to do with the present ...
... C) lower; lower D) None of the above answers is correct because the interest rate has nothing to do with the present ...
Chapter 14 - Anvari.net
... Issues & Applications: The United States Is Vying for the “Lead” in Deficits and Debt • The U.S. budget deficit has risen so fast that the U.S. deficit-GDP ratio now “beats” the ratios of ...
... Issues & Applications: The United States Is Vying for the “Lead” in Deficits and Debt • The U.S. budget deficit has risen so fast that the U.S. deficit-GDP ratio now “beats” the ratios of ...
Progressive approaches to budget deficits Malcolm Sawyer
... deficits in numerical terms where the number is ‘plucked out of the air’) is firstly to completely misunderstand the purposes of fissal policy and unbalanced budgets. It secondly argues that seeking a zero budget deficit would for many countries be difficult if not impossible to achieve, simply beca ...
... deficits in numerical terms where the number is ‘plucked out of the air’) is firstly to completely misunderstand the purposes of fissal policy and unbalanced budgets. It secondly argues that seeking a zero budget deficit would for many countries be difficult if not impossible to achieve, simply beca ...
Structural Fiscal Rule: A Proposal for Mexico
... thus resulting in a zero structural balance. Given that potential growth does not change in the short run, since it represents the economy’s steady state, then structural revenues also grow at a constant rate. This way, structural fiscal revenues are insulated from the volatility of the business cyc ...
... thus resulting in a zero structural balance. Given that potential growth does not change in the short run, since it represents the economy’s steady state, then structural revenues also grow at a constant rate. This way, structural fiscal revenues are insulated from the volatility of the business cyc ...
Structural Fiscal Rule: A Proposal for Mexico
... thus resulting in a zero structural balance. Given that potential growth does not change in the short run, since it represents the economy’s steady state, then structural revenues also grow at a constant rate. This way, structural fiscal revenues are insulated from the volatility of the business cyc ...
... thus resulting in a zero structural balance. Given that potential growth does not change in the short run, since it represents the economy’s steady state, then structural revenues also grow at a constant rate. This way, structural fiscal revenues are insulated from the volatility of the business cyc ...
Deficits Spo~l the Recovery? R~chard W. Kopcke*
... tuning of tax laws and spending programs to stabilize economic growth. Here, as in monetarism, markets "clear," but rational expectations distinguishes itself by assuming that households and businesses have sufficient (but not necessarily perfect) knowlege of one another’s rules for making economic ...
... tuning of tax laws and spending programs to stabilize economic growth. Here, as in monetarism, markets "clear," but rational expectations distinguishes itself by assuming that households and businesses have sufficient (but not necessarily perfect) knowlege of one another’s rules for making economic ...
CHAPTER 17 MACROECONOMIC POLICY IN AN OPEN ECONOMY
... Neither fiscal policy nor monetary policy are successful in promoting internal balance 25. Under a system of managed-floating exchange rates with modest exchange rate intervention: a. Fiscal policy is successful in promoting internal balance, while monetary policy is unsuccessful ...
... Neither fiscal policy nor monetary policy are successful in promoting internal balance 25. Under a system of managed-floating exchange rates with modest exchange rate intervention: a. Fiscal policy is successful in promoting internal balance, while monetary policy is unsuccessful ...
commission opinion
... which is part of the Stability and Growth Pact. However, while most provisions apply to the United Kingdom in the same manner as to other countries not participating in the euro area, point 5 of the Protocol on certain provisions relating to the United Kingdom states that the obligation under Articl ...
... which is part of the Stability and Growth Pact. However, while most provisions apply to the United Kingdom in the same manner as to other countries not participating in the euro area, point 5 of the Protocol on certain provisions relating to the United Kingdom states that the obligation under Articl ...
chapter 17 macroeconomic policy in an open economy
... Beggar-thy-neighbor policies At the Plaza Accord of 1985, the Group-of-Five nations agreed to drive the value of the dollar downward (i.e., depreciation) so as to help reduce the U.S. trade deficit. Answer the next two questions on the basis of this ...
... Beggar-thy-neighbor policies At the Plaza Accord of 1985, the Group-of-Five nations agreed to drive the value of the dollar downward (i.e., depreciation) so as to help reduce the U.S. trade deficit. Answer the next two questions on the basis of this ...
Chapter 17. Expectations, Output
... becomes ambiguous, because deficit reduction leads to a fall in the real interest rate and an increase in investment in the medium run and, thus, to an increase in output in the long run. In terms of equation (17.2), Y'e increases and r'e falls, both of which tend to shift the current period IS curv ...
... becomes ambiguous, because deficit reduction leads to a fall in the real interest rate and an increase in investment in the medium run and, thus, to an increase in output in the long run. In terms of equation (17.2), Y'e increases and r'e falls, both of which tend to shift the current period IS curv ...
IOSR Journal of Business and Management (IOSR-JBM)
... 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 of the early 1930s, it was generally believed that government should balance its budget or even ...
... 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 of the early 1930s, it was generally believed that government should balance its budget or even ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... i.e. Neoclassical theory, Keynesian theory and Ricardian Equivalence theory, each providing different paradigms (Bernheim, 1989). Firstly, the neoclassical theory of budget deficits stresses the need for attaining smoothing of tax (Lucas, 1986; Barro, 1989). This theory emphasizes on the expenditure ...
... i.e. Neoclassical theory, Keynesian theory and Ricardian Equivalence theory, each providing different paradigms (Bernheim, 1989). Firstly, the neoclassical theory of budget deficits stresses the need for attaining smoothing of tax (Lucas, 1986; Barro, 1989). This theory emphasizes on the expenditure ...