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Francesco Caprioli Optimal Fiscal Policy, Limited Commitment and Learning
Francesco Caprioli Optimal Fiscal Policy, Limited Commitment and Learning

... and Kehoe (1994a), Chari and Kehoe (1998), Faraglia, Marcet and Scott (2006, 2007), Marcet and Scott (2008), Scott (1999a, 2007)). One strong conclusion coming out of these models is that a benevolent government should set distorting taxes roughly constant over time and across states of nature. This ...
Working Paper 17-6: Does Greece Need More Official Debt Relief? If
Working Paper 17-6: Does Greece Need More Official Debt Relief? If

... Since mid-2015, the International Monetary Fund (IMF), EU institutions, and European creditor countries have been arguing whether Greece requires additional official debt relief—and if so, how much.1 One-and-a-half years later, their positions seem as far apart as ever. In a report released on Febru ...
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... in some cases there may be apparent discrepancies with the information issued by individual countries. ...
budget proposal 2016 medium-term fiscal plan 2016-2019
budget proposal 2016 medium-term fiscal plan 2016-2019

... slower than GDP growth. • The plan aimes for continued expenditure restraint so that growth in primary expenditure will be moderate in real terms, or 1,3% annually on average which will accumulate to around 5% over the forecasting period. Thus, the target for primary expenditure, excluding irregular ...
Portugal: Ex Post Evaluation of Exceptional Access Under the
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... supportive macroeconomic policy settings. The fiscal loosening in place since last year and the ECB’s appropriately supportive monetary policy stance have translated into robust consumption growth. However, overall GDP growth is being held back by weaker export growth and sluggish investment, with t ...
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... been revised up. GDP growth is expected to turn positive again in the second half of the year, thereby putting an end to the deepest, longest and most broad-based recession in EU's history. This would not have been possible without the determined and concerted policy action taken EU wide. In so doin ...
The Swedish fiscal policy framework
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... are not liable to prevent net lending from returning to a level in line with the surplus target when resource utilisation normalizes. Experience illustrates that once certain temporary measures of stabilisation policy have been introduced, it can be politically difficult to reverse them. Such measur ...
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... 15 May 2013. It covers the period 2013-2016. The financial package will cover up to EUR 10 billion, including EUR 1 billion from the IMF. In the last decade, Cyprus was increasingly faced with serious challenges in terms of unsustainable external and internal macroeconomic imbalances. While some imb ...
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GDP
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... mean the purchase of financial assets like stocks and bonds. © 2015 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected websi ...
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Implementing the Golden Rule for Public Investment in Europe
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... contrast, the golden rule of public investment proposed in this study would be one important element of the necessary institutional reform. The rule is widely accepted in traditional public finance and would allow financing net public investment by government deficits thus promoting intergenerationa ...
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... the IMF staff regarding macroeconomic assumptions. The medium-term fiscal projections incorporate policy measures that are judged by the IMF staff as likely to be implemented. For countries supported by an IMF arrangement, the medium-term projections are those under the arrangement. In cases in whic ...
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... competitive exchange rates; even the economies that were overtaken by severe crises have already started to pick up. The six years of negative per capita growth caused social damage that will take time to reverse. There are 20 million more poor Latin Americans in 2003 than there were in 1997. Unempl ...
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... discussion of the projected trends in the key economic indicators: gross state product, employment, unemployment, inflation, wages and population. The chapter also details the key risks facing the Victorian economy. ...
Implementing the Golden Rule for Public Investment in Europe
Implementing the Golden Rule for Public Investment in Europe

... Figure 10: general government net debt according to official forecasts (as of budget March 2000 until June 2010) and actual outturn in the UK in per cent of GDP, budgetary years 1998/99 to 2015/16.................................................................... 36 Figure A1: General government gr ...
Whither growth in central and eastern Europe? Policy lessons
Whither growth in central and eastern Europe? Policy lessons

... Torbjörn Becker has been Director of the Stockholm Institute of Transition Economics at the Stockholm School of Economics since August 2006. He is also a board member of the Swedish International Development Cooperation Agency, chairman of the board of the Kyiv Economics Institute (Ukraine) and CenE ...
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Perspectives on Global Real Interest Rates

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This PDF is a selection from an out-of-print volume from... Bureau of Economic Research
This PDF is a selection from an out-of-print volume from... Bureau of Economic Research

... network of nonfinancial public enterprises (henceforth, NFPEs) that have often been key players in the region's fiscal drama.3 (Table 6, below, presents the main summary statistics on NFPEs.) NFPEs often are the single largest source of revenues to the government, not only which case they would not ...
BULGARIA: ECONOMIC AND MARKET ANALYSES
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... As of end-January 2010 gross external debt was EUR 37,291.6 mn. (107.5% of GDP) and decreased by EUR 414.2 mn. against the end of 2009 (EUR 37,705.8 mn., 111.3% of GDP). The highest debt decrease was the decrease (by EUR 486.2 mn., 5.8%) of Banks’ liabilities. Compared to end-January 2009 (EUR 37,27 ...
World of Work Report 2010
World of Work Report 2010

... and several EU countries, this situation pushed households to borrow in order to fund their housing and consumption plans – which was possible because of a dysfunctional financial system. In other advanced economies like Germany and emerging countries such as China, growing inequalities translated i ...
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Austerity

In economics, austerity is a set of policies with the aim of reducing government budget deficits. Austerity policies may include spending cuts, tax increases, or a mixture of both. Austerity may be undertaken to demonstrate the government's fiscal discipline to their creditors and credit rating agencies by bringing revenues closer to expenditures.In most macroeconomic models, austerity policies generally increase unemployment in the short run, as government spending falls reducing jobs in the public or private sector or both, while tax increases reduce household disposable income and thus consumption. The U.S. Congressional Budget Office illustrated this when comparing unemployment under alternative fiscal scenarios.Unemployment increases safety net spending and further reduces tax revenues, partially offsetting the austerity measures. Government spending contributes to gross domestic product (GDP), so reducing spending may result in a higher debt-to-GDP ratio, a key measure of the debt burden carried by a country and its citizens. Higher short-term deficit spending (stimulus) contributes to GDP growth particularly when consumers and businesses are unwilling or unable to spend. This is because crowding out (i.e., rising interest rates as government bids against business for a finite amount of savings, slowing the economy) is less of a factor in a downturn, as there may be a surplus of savings.In the aftermath of the Great Recession, austerity results in Europe have been as predicted by macroeconomics, with unemployment rising to record levels and debt-to-GDP ratios rising, despite reductions in budget deficits relative to GDP. Eurostat reported that unemployment in the 17 Euro area countries (EA17) reached record levels in March 2013, at 12.1%, up from 11.0% in March 2012 and 10.3% in March 2011; and that the overall debt-to-GDP ratio for the EA17 was 70.1% in 2008, 80.0% in 2009, 85.4% in 2010, 87.3% in 2011, and 90.6% in 2012. Further, real GDP in the EA17 declined for six straight quarters from Q4 2011 to Q1 2013. The U.S. Congressional Budget Office estimated in August 2012 that if the U.S. implemented moderate austerity measures, the unemployment rate would rise by over 1% and economic growth would be significantly reduced in 2013. The U.S. partially avoided the ""fiscal cliff"" through the American Taxpayer Relief Act of 2012. U.S. unemployment has fallen steadily from a peak of 10% in early 2010 to 5.3% by July 2015.
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