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Author: Fabrizio Balassone
Publisher:
ISBN:
Category : Debts, Public
Languages : en
Pages : 36
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Book Description
Author: Fabrizio Balassone
Publisher:
ISBN:
Category : Debts, Public
Languages : en
Pages : 36
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Book Description
Author: Mr.Rabah Arezki
Publisher: International Monetary Fund
ISBN: 1451982712
Category : Business & Economics
Languages : en
Pages : 35
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Book Description
We examine the behavior of expenditure policy during boom-bust in commodity price cycles, and its implication for real exchange rate movements. To do so, we introduce a Dutch disease model with downward rigidities in government spending to revenue shock. This model leads to a decoupling between real exchange rate and commodity price movement during busts. We test our model's theoretical predictions and underlying assumptions using panel data for 32 oil-producing countries over the period 1992 to 2009. Results are threefold. First, we find that change in current spending have a stronger impact on the change in real exchange rate compared to capital spending. Second, we find that current spending is downwardly sticky, but increases in boom time, and conversely for capital spending. Third, we find limited evidence that fiscal rules have helped reduce the degree of responsiveness of current spending during booms. In contrast, we find evidence that fiscal rules are associated with a significant reduction in capital expenditure during busts while responsiveness to boosts is more muted. This raises concerns about potential adverse consequences of this asymmetry on economic performance in oil-producing countries.
Author: Vitor Gaspar
Publisher: International Monetary Fund
ISBN: 1475589522
Category : Business & Economics
Languages : en
Pages : 548
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Book Description
Two main themes of the book are that (1) politics can distort optimal fiscal policy through elections and through political fragmentation, and (2) rules and institutions can attenuate the negative effects of this dynamic. The book has three parts: part 1 (9 chapters) outlines the problems; part 2 (6 chapters) outlines how institutions and fiscal rules can offer solutions; and part 3 (4 chapters) discusses how multilevel governance frameworks can help.
Author: Mr.Serhan Cevik
Publisher: International Monetary Fund
ISBN: 1475516118
Category : Business & Economics
Languages : en
Pages : 40
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Book Description
This paper investigates the determinants of fiscal policy behavior and its time-varying volatility, using panel data for a broad set of advanced and emerging market economies during the period 1990–2012. The empirical results show that discretionary fiscal policy is influenced by policy inertia, the level of public debt, and the output gap in both advanced and emerging market economies. In addition, the paper finds that macro-financial factors—such as real exchange rate, financial development, interest rates, asset prices, and natural resource rents—and demographic and institutional factors—such as the old-age dependency ratio, the quality of institutions, and policy anchors such as fiscal rules and IMF-supported stabilization programs—tend to have a significant effect on fiscal policy behavior. The results also indicate that higher government debt leads to more volatile fiscal behavior, while fiscal rules and higher institutional quality reduce the volatility of fiscal policy over time.
Author: Mr.Manmohan S. Kumar
Publisher: International Monetary Fund
ISBN: 158906609X
Category : Business & Economics
Languages : en
Pages : 144
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Book Description
Fiscal discipline is essential to improve and sustain economic performance, maintain macroeconomic stability, and reduce vulnerabilities. Discipline is especially important if countries, industrial as well as developing, are to successfully meet the challenges, and reap the benefits, of economic and financial globalization. Lack of fiscal discipline generally stems from the injudicious use of policy discretion. The benefits of discretion are seen in terms of the ability of policymakers to respond to unexpected shocks and in allowing elected political representatives to fulfill their mandates. But discretion can be misused, resulting in persistent deficits and procyclical policies, rising debt levels, and, over time, a loss in policy credibility. The authors first explore the role of discretion in fiscal policy, and the extent, consequences, and causes of procyclicality, particularly in good times. They then examine how a variety of institutional approaches—fiscal rules, fiscal responsibility laws, and fiscal agencies—can help improve fiscal discipline. While each of these approaches can play a useful role, the authors suggest that a strategy combining them is likely to be particularly beneficial. Although such a strategy requires political commitment and effective fiscal management, at the same time, the strategy itself can bolster political commitment by highlighting the restraints on government and raising the costs of failing to respect them.
Author: Martin Larch
Publisher: Routledge
ISBN: 1135234949
Category : Business & Economics
Languages : en
Pages : 219
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Book Description
""Fiscal policy making in the European Union is a national prerogative that is carried out and co-ordinated within the remits of the Stability and Growth Pact (SGP). The SGP Member States have agreed upon a rules-based framework which, abstracting from operational details, aims to ensure long-term sustainability of public finances while allowing for short-term fiscal stabilization. The success of the EU fiscal framework depends to a large extent on the effectiveness and accuracy of the tool-kit of indicators and methods used at the EU level to monitor and assess the fiscal performance of the Member States vis-a-vis the requirements of the SGP. The contributions to this volume examine key aspects of the measurement of fiscal policy making in the context of the EU fiscal surveillance framework. They highlight strengths and weaknesses of current assessment practice, including innovations implied by the 2005 revision of the SGP." "--Jacket.
Author: Lorenzo Forni
Publisher:
ISBN:
Category : Fiscal policy
Languages : en
Pages : 52
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Book Description
Author: International Monetary Fund. Research Dept.
Publisher: International Monetary Fund
ISBN: 1589066510
Category : Business & Economics
Languages : en
Pages : 212
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Book Description
This issue features a timely paper by Vladimir Klyuev and Paul Mills on the role of personal wealth and home equity withdrawal in the decline in the U.S. saving rate. Lusine Lusinyan and Leo Bonato explain how work absence in 18 European countries affects labor supply and demand. And a paper by Paolo Manasse (University of Bologna) entitled "Deficit Limits and Fiscal Rules for Dummies" examines fiscal frameworks.
Author: Roberto Golinelli
Publisher:
ISBN:
Category : Euro area
Languages : en
Pages : 60
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Book Description
Author: Georges De Menil
Publisher: John Wiley & Sons
ISBN: 1405189193
Category : Business & Economics
Languages : en
Pages : 212
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Book Description
Top economists provide a concise and accessible evaluation of major developments in trade and trade policy. Economic Policy has earned a reputation around the world as the one publication that always identifies current and emerging policy topics early Papers are specially commissioned from first-class economists and experts in the policy field The editors are all based at top European economic institutions and each paper is discussed by a panel of distinguished economists This unique approach guarantees incisive debate and alternative interpretations of the evidence
