Does austerity pay off?
... LOEWE. Müller also thanks the German Science Foundation (DFG) for financial support under the Priority Program 1578. The usual disclaimer applies. ...
... LOEWE. Müller also thanks the German Science Foundation (DFG) for financial support under the Priority Program 1578. The usual disclaimer applies. ...
Austerity: The History of a Dangerous Idea
... growth.”4 Today the US debt drama is about to repeat itself in the form of a so-called fiscal cliff that the United States will fall off when automatic spending cuts kick in in January 2013 if Congress cannot decide on what to cut. The schizophrenia Blanchard identified a year previously continues o ...
... growth.”4 Today the US debt drama is about to repeat itself in the form of a so-called fiscal cliff that the United States will fall off when automatic spending cuts kick in in January 2013 if Congress cannot decide on what to cut. The schizophrenia Blanchard identified a year previously continues o ...
Greece 10 Years Ahead
... almost entirely by consumption. Between 2000 and 2008, private and public consumption rose by approximately four percentage points of GDP and accounted for 97% of cumulative GDP generation for the period, compared with countries like Austria, France, Germany, Belgium, Luxembourg, and the Netherlands ...
... almost entirely by consumption. Between 2000 and 2008, private and public consumption rose by approximately four percentage points of GDP and accounted for 97% of cumulative GDP generation for the period, compared with countries like Austria, France, Germany, Belgium, Luxembourg, and the Netherlands ...
Does austerity pay off - Centre for Economic Policy Research
... the Priority Program 1578. The usual disclaimer applies. ...
... the Priority Program 1578. The usual disclaimer applies. ...
Fiscal Austerity during Debt Crises
... . The resource constraint limits public and private consumption to be less than output net of the international debt operations. Default can also be beneficial for aggregate reasons. Default relaxes the resource constraint and allows total consumption to be higher. The first takeaway from our analy ...
... . The resource constraint limits public and private consumption to be less than output net of the international debt operations. Default can also be beneficial for aggregate reasons. Default relaxes the resource constraint and allows total consumption to be higher. The first takeaway from our analy ...
Does austerity pay off
... that government consumption leaves economic activity unaffected in the absence of fiscal stress. On the other hand, in the presence of fiscal stress spending cuts raise spreads and depress economic activity considerably. Fiscal stress episodes thus tend to dominate the overall sample. We also find ...
... that government consumption leaves economic activity unaffected in the absence of fiscal stress. On the other hand, in the presence of fiscal stress spending cuts raise spreads and depress economic activity considerably. Fiscal stress episodes thus tend to dominate the overall sample. We also find ...
Europe’s Fiscal Crisis Revealed: In-Depth Analysis of Spending, Austerity, and Growth
... the academic literature is that the composition of fiscal adjustment is a key factor in achieving successful and lasting reductions in debt-to-GDP ratio. Specifically, fiscal adjustment packages made mostly of spending cuts are more likely to lead to lasting debt reduction than those made of tax inc ...
... the academic literature is that the composition of fiscal adjustment is a key factor in achieving successful and lasting reductions in debt-to-GDP ratio. Specifically, fiscal adjustment packages made mostly of spending cuts are more likely to lead to lasting debt reduction than those made of tax inc ...
Greece 10 Years Ahead
... terms of economic wealth generation, despite having been a growth champion in the past. Even before the crisis in 2007, for example, Greece’s GDP per capita was lagging behind the EU-15 and the US by 15% and 35% respectively2 (11% and 33% in 2009). This ‘wealth gap’ is primarily due to lower product ...
... terms of economic wealth generation, despite having been a growth champion in the past. Even before the crisis in 2007, for example, Greece’s GDP per capita was lagging behind the EU-15 and the US by 15% and 35% respectively2 (11% and 33% in 2009). This ‘wealth gap’ is primarily due to lower product ...
Does austerity pay off?
... objective, because the output effects of austerity are likely to depend on the state of the economy. For instance, if there is pervasive slack in the economy, contractionary fiscal measures may have particularly adverse effects on economic activity (Auerbach and Gorodnichenko, 2012). In this case, ...
... objective, because the output effects of austerity are likely to depend on the state of the economy. For instance, if there is pervasive slack in the economy, contractionary fiscal measures may have particularly adverse effects on economic activity (Auerbach and Gorodnichenko, 2012). In this case, ...
LIVING (DANGEROUSLY) WITHOUT A FISCAL UNION
... Thus, instead of initiating meaningful change, the crisis reinforced the national interests and preferences that had led to the euro area’s creation as an incomplete monetary union. Indeed, the emphasis on national fiscal discipline – austerity – was emphasised through several initiatives after 201 ...
... Thus, instead of initiating meaningful change, the crisis reinforced the national interests and preferences that had led to the euro area’s creation as an incomplete monetary union. Indeed, the emphasis on national fiscal discipline – austerity – was emphasised through several initiatives after 201 ...
ppt presentation
... ECB is of the opinion that fiscal crises ought be solved via fiscal measures It has loosened its collateral requirements and agreed to extend its special liquidity programs to stabilize market conditions Under its nuclear option, the SMP, it has bought around €70 bn of bonds, an action differe ...
... ECB is of the opinion that fiscal crises ought be solved via fiscal measures It has loosened its collateral requirements and agreed to extend its special liquidity programs to stabilize market conditions Under its nuclear option, the SMP, it has bought around €70 bn of bonds, an action differe ...
The Economics of Austerity and the Vicious Spirals of Greece
... (EMU) Greece could not use monetary policy as a stabilizing tool and was therefore left with internal devaluation after the financial crisis hit Europe. The resulting sharp decline in wages and GDP growth made it even more difficult for Greece to honour its debt. Greece was therefore forced to negot ...
... (EMU) Greece could not use monetary policy as a stabilizing tool and was therefore left with internal devaluation after the financial crisis hit Europe. The resulting sharp decline in wages and GDP growth made it even more difficult for Greece to honour its debt. Greece was therefore forced to negot ...
Do Austerity Measures Harm International Trade?
... as this rate exceeds the interest rate paid for the issued bonds, the government’s deficit is going to smoothly decrease in the upcoming years (Blyth, 2013b). The latter considers the fiscal expansion as nonsense due to the ability of consumers to anticipate (being perfect rational) future increases ...
... as this rate exceeds the interest rate paid for the issued bonds, the government’s deficit is going to smoothly decrease in the upcoming years (Blyth, 2013b). The latter considers the fiscal expansion as nonsense due to the ability of consumers to anticipate (being perfect rational) future increases ...
The Greek crisis - austerity measures as remedy or punitive action?
... In 2008 the financial hit Greece. The country was approaching bankruptcy and needed to find money lenders to pay back its enormous mountain of debt. That was a rather challenging task as the status of the country changed to one that money lenders preferred to avoid. Its call for help was answered by ...
... In 2008 the financial hit Greece. The country was approaching bankruptcy and needed to find money lenders to pay back its enormous mountain of debt. That was a rather challenging task as the status of the country changed to one that money lenders preferred to avoid. Its call for help was answered by ...
Diagnosis, Treatment, and Effects of the Crisis in Greece
... The retreat of Keynesian regulation since the mid-1970s has been followed by several phases of neoliberalization. The most recent has consisted in liberalizing, among others, housing policy and a range of policies in the US and partially in the EU, making citizens responsible for the funding of thei ...
... The retreat of Keynesian regulation since the mid-1970s has been followed by several phases of neoliberalization. The most recent has consisted in liberalizing, among others, housing policy and a range of policies in the US and partially in the EU, making citizens responsible for the funding of thei ...
Introduction to International Political Economy
... Introduction of Euro reduced borrowing costs for many “less developed” European economies ...
... Introduction of Euro reduced borrowing costs for many “less developed” European economies ...
Fiscal austerity versus growth in Croatia
... The financial crisis has been reflected in high fiscal deficits, increasing debt, and a decline in aggregate demand and production, all of which have had a negative impact on employment and have deepened both inequality and poverty, especially in transitional countries that are confronted by struct ...
... The financial crisis has been reflected in high fiscal deficits, increasing debt, and a decline in aggregate demand and production, all of which have had a negative impact on employment and have deepened both inequality and poverty, especially in transitional countries that are confronted by struct ...
CESifo Working Paper no. 5591 - ORCA
... purpose is the Ease of Doing Business Index (EDBI) published by the World Bank. In 2010 Greece’s performance was disappointing, reflected in a ranking of 109 out of 183 countries. Two years into the crisis (2012), with Greek authorities hesitant to promote reforms, Greece ranked 100 out of 193. In ...
... purpose is the Ease of Doing Business Index (EDBI) published by the World Bank. In 2010 Greece’s performance was disappointing, reflected in a ranking of 109 out of 183 countries. Two years into the crisis (2012), with Greek authorities hesitant to promote reforms, Greece ranked 100 out of 193. In ...
The Business Impact of a Greek Euro-Zone Exit Risk Insights
... and Spain suffered from significant downgrades. Most European countries are ranked lower than before the outbreak of the euro-zone crisis in early 2010. Despite being on track with their reform packages and austerity measures, Ireland, and more so Portugal, are still in a very weak position and coul ...
... and Spain suffered from significant downgrades. Most European countries are ranked lower than before the outbreak of the euro-zone crisis in early 2010. Despite being on track with their reform packages and austerity measures, Ireland, and more so Portugal, are still in a very weak position and coul ...
The Greek Crisis: Causes and Implications
... Furthermore, they followed expansionary fiscal and monetary policies along with an array of complementary stimulus programmes in order to increase aggregate demand and to make sure that their economies will not fall in deep recession. These large stimulus programmes and bail out schemes are expected ...
... Furthermore, they followed expansionary fiscal and monetary policies along with an array of complementary stimulus programmes in order to increase aggregate demand and to make sure that their economies will not fall in deep recession. These large stimulus programmes and bail out schemes are expected ...
EXPLANATORY MEMORANDUM In response to a request of 8 July
... and sustainable primary surpluses over the medium-term that will reduce the debt-toGDP ratio steadily. Greece shall accordingly pursue a fiscal path premised on primary surplus targets of 1,75% of GDP in 2017 and 3,5% of GDP as of 2018 and over the medium-term. The authorities commit to take further ...
... and sustainable primary surpluses over the medium-term that will reduce the debt-toGDP ratio steadily. Greece shall accordingly pursue a fiscal path premised on primary surplus targets of 1,75% of GDP in 2017 and 3,5% of GDP as of 2018 and over the medium-term. The authorities commit to take further ...
King et al CJE 2012 - Michael Kitson: Economist
... The evolving political and economic responses to the developing crisis have demonstrated that this time the situation is, indeed, different. The collapse of Bear Stearns and its subsequent sale to JP Morgan at a knockdown price of $2.00 a share was reminiscent of the swift action taken to avert a wi ...
... The evolving political and economic responses to the developing crisis have demonstrated that this time the situation is, indeed, different. The collapse of Bear Stearns and its subsequent sale to JP Morgan at a knockdown price of $2.00 a share was reminiscent of the swift action taken to avert a wi ...
The Migration of Greek Scientists Abroad
... At that time, Greece the unemployment rate ranged at very high levels and as a result a big number of the workforce was driven to migration towards other more developed countries. The immigration of the Greek workforce abroad had the positive effect of reducing the level of unemployment within the b ...
... At that time, Greece the unemployment rate ranged at very high levels and as a result a big number of the workforce was driven to migration towards other more developed countries. The immigration of the Greek workforce abroad had the positive effect of reducing the level of unemployment within the b ...
Greek government-debt crisis countermeasures
The Greek government-debt crisis is one of a number of current European sovereign-debt crises. In late 2009, fears of a sovereign debt crisis developed among investors concerning Greece's ability to meet its debt obligations because of strong increase in government debt levels. This led to a crisis of confidence, indicated by a widening of bond yield spreads and the cost of risk insurance on credit default swaps compared to the other countries in the Eurozone, most importantly Germany.