Is the Twin Deficits Hypothesis Relevant to Fiji?
... exercise upward pressure on interest rate, which would trigger capital inflows, resulting in appreciation of exchange rate (Mundell, 1962, Fleming, 1962). The adjustment is, therefore, on exchange rate, restoring external balance. On the other hand, under a fixed exchange rate regime, with exchange ...
... exercise upward pressure on interest rate, which would trigger capital inflows, resulting in appreciation of exchange rate (Mundell, 1962, Fleming, 1962). The adjustment is, therefore, on exchange rate, restoring external balance. On the other hand, under a fixed exchange rate regime, with exchange ...
NBER WORKING PAPER SERIES CONCEPTS AND MEASURES OF FEDERAL
... pernicious levels than just mentioned. While virtually all economists agree that an increase in government spending - - ...
... pernicious levels than just mentioned. While virtually all economists agree that an increase in government spending - - ...
Fiscal Policy Measures and Balance of Payments in Nigeria
... and international forces that help to shape a country’s economic status in the global setting. Attiya empirically investigated the effects of fiscal policy (or government budget deficit shocks) on the current account and the other macroeconomic variable such as real output, interest rate and exchang ...
... and international forces that help to shape a country’s economic status in the global setting. Attiya empirically investigated the effects of fiscal policy (or government budget deficit shocks) on the current account and the other macroeconomic variable such as real output, interest rate and exchang ...
Do federal budget deficits cause crowding out?
... higher interest rates or a higher user cost of capital, creating higher prices for private firms to borrow money. As interest rates increase, firms face a lower rate of return and thus reduce investment. So as the public sector gets more, it “crowds out” private sector investment. As the private sec ...
... higher interest rates or a higher user cost of capital, creating higher prices for private firms to borrow money. As interest rates increase, firms face a lower rate of return and thus reduce investment. So as the public sector gets more, it “crowds out” private sector investment. As the private sec ...
Chapter 9 M G F
... However, the large structural fiscal deficit caused due to dominant share of structural primary deficit and structural interest payments have reduced the role that cyclical component of fiscal deficit can play during the periods of macroeconomic fluctuations. The primary surplus, which was experienc ...
... However, the large structural fiscal deficit caused due to dominant share of structural primary deficit and structural interest payments have reduced the role that cyclical component of fiscal deficit can play during the periods of macroeconomic fluctuations. The primary surplus, which was experienc ...
Fiscal Expansion, the Budget Deficit and the Economy: Norway
... which responds to external forces which raise the structural deficit, by discretionary expenditure cuts or tax increases. Thus, when structural changes in the economy (e.g. ageing of the population) lead to increased deficits, we may be lead to say that fiscal policy has been loosened even if every ...
... which responds to external forces which raise the structural deficit, by discretionary expenditure cuts or tax increases. Thus, when structural changes in the economy (e.g. ageing of the population) lead to increased deficits, we may be lead to say that fiscal policy has been loosened even if every ...
A Brookings Macroeconomic Forum DO BUDGET DEFICITS
... That is pull out the cyclical effects. That is the effects of the macro-economy as it goes through expansions and recessions, out of the deficit. In other words, in a sense smooth the deficits or surpluses out to solely reflect the underlying policy -- that's the idea -- rather than the swings that ...
... That is pull out the cyclical effects. That is the effects of the macro-economy as it goes through expansions and recessions, out of the deficit. In other words, in a sense smooth the deficits or surpluses out to solely reflect the underlying policy -- that's the idea -- rather than the swings that ...
Fiscal Stimulus and Potential Inflationary Risks
... Abstract: The fiscal response in India to deal with the contagion from the global crisis during 2008-10 was driven by the need to arrest a major slowdown in economic growth. Given the usual inflexibility of fiscal deficit once it reaches a high level, as has been experienced by India in the past, th ...
... Abstract: The fiscal response in India to deal with the contagion from the global crisis during 2008-10 was driven by the need to arrest a major slowdown in economic growth. Given the usual inflexibility of fiscal deficit once it reaches a high level, as has been experienced by India in the past, th ...
Optimal Budget Deficits
... reduce national savings, and part of the reduction in national savings manifests itself as increased borrowing from abroad, budget deficits and current account deficits are interrelated. While such “external” debt does not entail the direct substitution of government bonds for private capital inves ...
... reduce national savings, and part of the reduction in national savings manifests itself as increased borrowing from abroad, budget deficits and current account deficits are interrelated. While such “external” debt does not entail the direct substitution of government bonds for private capital inves ...
An Analysis of the Fiscal Stance of the New Zealand Government
... imbalances have been calculated the relation of the Government’s fiscal stance to the rest of the economy can be modelled. In doing so it is possible to determine if the inflation adjusted structural budget imbalance has a greater impact on short-term business cycles than the nominal structural imba ...
... imbalances have been calculated the relation of the Government’s fiscal stance to the rest of the economy can be modelled. In doing so it is possible to determine if the inflation adjusted structural budget imbalance has a greater impact on short-term business cycles than the nominal structural imba ...
Stability and Growth Pact - An Overview
... (1) major structural reforms (e.g. pension reforms) which have a verifiable long-term (positive) impact on the public finances including by raising potential sustainable growth provided that the the deviation from the MTO or the adjustment path does not exceed 0.5% of the GDP, the MTO is reached wit ...
... (1) major structural reforms (e.g. pension reforms) which have a verifiable long-term (positive) impact on the public finances including by raising potential sustainable growth provided that the the deviation from the MTO or the adjustment path does not exceed 0.5% of the GDP, the MTO is reached wit ...
Official PDF , 73 pages
... shows the declining shares of private non-guaranteeddebt in medium and long term debt which came about due to reduced foreign credit to the private sector and the takeoverof some oi the private debt by the public which would restrict sector so as to avoid problemsof credit-worthiness other sources o ...
... shows the declining shares of private non-guaranteeddebt in medium and long term debt which came about due to reduced foreign credit to the private sector and the takeoverof some oi the private debt by the public which would restrict sector so as to avoid problemsof credit-worthiness other sources o ...
Welfare and fiscal crises in France, United Kingdom and Germany
... agreement about levels of social spending and taxation levels. When all these could be settled in an annual round of negotiations, in principle at least, a balanced budget could be produced. Once this corporatist mechanism is abandoned, the decisions on wages, spending and taxation are subject to s ...
... agreement about levels of social spending and taxation levels. When all these could be settled in an annual round of negotiations, in principle at least, a balanced budget could be produced. Once this corporatist mechanism is abandoned, the decisions on wages, spending and taxation are subject to s ...
UK government debt and deficit for Eurostat (MAAST)
... Table M4 shows how the deficit can be reconciled with the changes in gross debt (in British pounds million). Table M5 shows how the unconsolidated financial liabilities of central government and local government are consolidated to arrive at general government consolidated gross debt (in British pou ...
... Table M4 shows how the deficit can be reconciled with the changes in gross debt (in British pounds million). Table M5 shows how the unconsolidated financial liabilities of central government and local government are consolidated to arrive at general government consolidated gross debt (in British pou ...
Fiscal Stimulus: A Neoclassical Perspective
... calibrated in the real business cycle literature (e.g. King and Rebelo, 1999). This observation relates the present investigation to a series of recent articles applying the neoclassical growth model to the study of the Great Depression.1 Imposing the historically observed times series for TFP this ...
... calibrated in the real business cycle literature (e.g. King and Rebelo, 1999). This observation relates the present investigation to a series of recent articles applying the neoclassical growth model to the study of the Great Depression.1 Imposing the historically observed times series for TFP this ...
NBER WORKING PAPER SERIES THE RICARDIAN APPROACH TO BUDGET DEFICITS
... deficits in the United States and other countries with large budget deficits, and either a high or low dollar (depending apparently on the time period). On the other hand, this crisis scenario has been hard to maintain along with ...
... deficits in the United States and other countries with large budget deficits, and either a high or low dollar (depending apparently on the time period). On the other hand, this crisis scenario has been hard to maintain along with ...
IOSR Journal of Business and Management (IOSR-JBM)
... do its functions a government uses budget as a planning and financial tool. There is a budget deficit while the government revenues are less than the government expenditures. Vice versa, when the government expenditures less than its revenues it is said that the government has budget surplus. There ...
... do its functions a government uses budget as a planning and financial tool. There is a budget deficit while the government revenues are less than the government expenditures. Vice versa, when the government expenditures less than its revenues it is said that the government has budget surplus. There ...
DEFICIT
... sector Keynesian analysis. The key to this surprising possibility is that an increased budget deficit changes the sectoral balance of demand. A reduction of taxes or an increase in transfer payments raises the demand for consumer goods. At the same time, the rise in the interest rates that results f ...
... sector Keynesian analysis. The key to this surprising possibility is that an increased budget deficit changes the sectoral balance of demand. A reduction of taxes or an increase in transfer payments raises the demand for consumer goods. At the same time, the rise in the interest rates that results f ...
IPE1_2 - DSE | @univr.it
... that national debt. Over time, the interest payments may become a sufficiently large fraction of the government's financing needs that they render fiscal policy inflexible. Fiscal policy to attack unemployment, for example, may not be undertaken because financing is not available. • b. A growing nat ...
... that national debt. Over time, the interest payments may become a sufficiently large fraction of the government's financing needs that they render fiscal policy inflexible. Fiscal policy to attack unemployment, for example, may not be undertaken because financing is not available. • b. A growing nat ...
The Impact of Budget Deficit
... and then to point C. Output has temporarily increased above the natural level, but eventually has declined, while the price level has climbed up to the new height (from P2 to P3)2. Keynesian analysis of the situation predicts the same movements in aggregate demand and aggregate supply curves. The on ...
... and then to point C. Output has temporarily increased above the natural level, but eventually has declined, while the price level has climbed up to the new height (from P2 to P3)2. Keynesian analysis of the situation predicts the same movements in aggregate demand and aggregate supply curves. The on ...
Seasonally adjusted government deficit down Second quarter of 2014
... 2. Quarterly non-financial accounts for general government are collected from the Member under gentlemen's agreement. The concepts used are fully in line with the methodology laid out in Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system o ...
... 2. Quarterly non-financial accounts for general government are collected from the Member under gentlemen's agreement. The concepts used are fully in line with the methodology laid out in Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system o ...
Budget Deficit, Money Supply and Inflation: The Case of Pakistan
... In the case of Pakistan, studies conducted to examine the role of fiscal deficit as a major determinant of inflation also provide mixed results. Bilquees (1988) finds no relationship between budget deficit and inflation. Neyapti’s (1998) empirical analysis based on the data set for 44 developing and ...
... In the case of Pakistan, studies conducted to examine the role of fiscal deficit as a major determinant of inflation also provide mixed results. Bilquees (1988) finds no relationship between budget deficit and inflation. Neyapti’s (1998) empirical analysis based on the data set for 44 developing and ...
IOSR Journal of Economics and Finance (IOSR-JEF)
... bureaucracy and wasteful project in the course of the boom, the return to deficit spending became justified on the grounds that the bureaucracy and uncompleted projects needed to be complete. Problem Statement Bhatia (2003) posits that when a government spends more revenue then it collects in form o ...
... bureaucracy and wasteful project in the course of the boom, the return to deficit spending became justified on the grounds that the bureaucracy and uncompleted projects needed to be complete. Problem Statement Bhatia (2003) posits that when a government spends more revenue then it collects in form o ...
Federal deficits
... increase gifts/bequests to their children. If greater saving offsets federal deficits, deficit spending will not increase AD because the decline in consumption will negate the fiscal stimulus provided by deficits. This offsets future burden of higher debt and neutralizes effect of deficit spendi ...
... increase gifts/bequests to their children. If greater saving offsets federal deficits, deficit spending will not increase AD because the decline in consumption will negate the fiscal stimulus provided by deficits. This offsets future burden of higher debt and neutralizes effect of deficit spendi ...