Fiscal Policy and Macroeconomic Stability PDF Download
Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Fiscal Policy and Macroeconomic Stability PDF full book. Access full book title Fiscal Policy and Macroeconomic Stability by Mr.Xavier Debrun. Download full books in PDF and EPUB format.
Author: Mr.Xavier Debrun
Publisher: International Monetary Fund
ISBN: 1455200700
Category : Business & Economics
Languages : en
Pages : 48
Get Book Here
Book Description
The paper revisits the link between fiscal policy and macroeconomic stability. Two salient features of our analysis are (1) a systematic test for the government’s ambivalent role as a shock absorber and a shock inducer—removing a downward bias present in existing estimates of the impact of automatic stabilizers—and (2) a broad sample of advanced and emerging market economies. Results provide strong support for the view that fiscal stabilization operates mainly through automatic stabilizers. Also, the destabilizing impact of policy changes not systematically related to the business cycle may not be as robust as suggested in the literature.
Author: Mr.Xavier Debrun
Publisher: International Monetary Fund
ISBN: 1455200700
Category : Business & Economics
Languages : en
Pages : 48
Get Book Here
Book Description
The paper revisits the link between fiscal policy and macroeconomic stability. Two salient features of our analysis are (1) a systematic test for the government’s ambivalent role as a shock absorber and a shock inducer—removing a downward bias present in existing estimates of the impact of automatic stabilizers—and (2) a broad sample of advanced and emerging market economies. Results provide strong support for the view that fiscal stabilization operates mainly through automatic stabilizers. Also, the destabilizing impact of policy changes not systematically related to the business cycle may not be as robust as suggested in the literature.
Author: Laurence S. Seidman
Publisher: Routledge
ISBN: 1317476271
Category : Business & Economics
Languages : en
Pages : 264
Get Book Here
Book Description
Drawing on the most prominent research in the field, this timely book offers bold new fiscal policies that can complement current automatic stabilizers and counter-cyclical monetary policy to help combat recessions. Dr. Seidman argues for an independent fiscal policy board or the Federal Reserve to decide changes in the magnitude of Congress's fiscal policy package of stimulus or restraint, with recommendations going into effect immediately, subject only to Congressional override.
Author: Guillermo E. Perry
Publisher: World Bank Publications
ISBN: 0821370855
Category : Business & Economics
Languages : en
Pages : 354
Get Book Here
Book Description
Fiscal policy in Latin America has been guided primarily by short-term liquidity targets whose observance was taken as the main exponent of fiscal prudence, with attention focused almost exclusively on the levels of public debt and the cash deficit. Very little attention was paid to the effects of fiscal policy on growth and on macroeconomic volatility over the cycle. Important issues such as the composition of public expenditures (and its effects on growth), the ability of fiscal policy to stabilize cyclical fluctuations, and the currency composition of public debt were largely neglected. As a result, fiscal policy has often amplified cyclical volatility and dampened growth. 'Fiscal Policy, Stabilization, and Growth' explores the conduct of fiscal policy in Latin America and its consequences for macroeconomic stability and long-term growth. In particular, the book highlights the procyclical and anti-investment biases embedded in the region's fiscal policies, explores their causes and macroeconomic consequences, and asesses their possible solutions.
Author: Glenn Follette
Publisher: DIANE Publishing
ISBN: 1437939880
Category : Business & Economics
Languages : en
Pages : 40
Get Book Here
Book Description
Examines the effects of the economy on the gov¿t. budget as well as the effects of the budget on the economy. Provides measures of the effects of automatic stabilizers on budget outcomes at the fed., state and local levels. At the fed. level, the deficit increases about 0.35% of GDP for each 1 percentage point deviation of actual GDP relative to potential GDP. For state and local gov¿t., the deficit increases by 0.1% of GDP. Examines the response of the economy to the automatic stabilizers by comparing the response to aggregate demand shocks. The authors find that federal policy actions are somewhat counter-cyclical while state and local policy actions have been somewhat pro-cyclical. Illustrations. This is a print on demand publication.
Author: Richard Abel Musgrave
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 392
Get Book Here
Book Description
Author: Khanh Pham-Gia
Publisher: GRIN Verlag
ISBN: 3640381262
Category : Political Science
Languages : en
Pages : 25
Get Book Here
Book Description
Research Paper (undergraduate) from the year 2008 in the subject Business economics - Economic Policy, grade: 1.0, University of applied sciences, Munich, language: English, abstract: The object of this study is to analyze the influence of fiscal policy, in particular of the public expenditure, on the stabilization of business cycle. Moreover, the functional principle of automatic stabilizers and the impact of fiscal stabilizers on businesses are studied. The condition for a steady economic development is achievement of stability targets like full employment of production factors, monetary stability, balancing of payment as well as equilibrium of foreign trade. To counteract the economic fluctuations government can apply two stability tools: the fiscal and the monetary policy. These both policies affect the aggregate demand and contribute to stabilize short-run economic fluctuations. The principle of the fiscal policy is an adjustment of public expenditure and public revenue (taxes) in according to the economic situation. A higher public expenditure leads to an increasing of the aggregate demand. The total change in GDP is depending on two opposite macroeconomic effects: the multiplier and the crowding-out effect. The multiplier effect results, that the total change in demand as well as in GDP can be a multiple of the initial public expenditure. Contrary, the crowding-out effect leads to a reduced aggregate demand due to the aligned increasing of interest rate. The impact of public expenditure on GDP depends on whether the multiplier effect or the crowding-out effect is stronger. An opportunity to avoid problems of lags in implementation by using of the fiscal policy is automatic stabilizers, e.g. tax system and government spending. They enable an automatic adjustment of the aggregate demand without additional actions or interventions of policymakers. The fiscal stabilizers have a positive impact on various businesses, but with different degrees. It could be summarized, that the fiscal policy affects both the aggregate demand and the aggregate supply. By means of fiscal stabilizers economic fluctuations could be smoothen.
Author: Hassan Bougrine
Publisher: Edward Elgar Publishing
ISBN: 1786439573
Category : Business & Economics
Languages : en
Pages : 360
Get Book Here
Book Description
Hassan Bougrine, Louis-Philippe Rochon and the expert contributors to this book explore issues of economic growth and full employment; presenting a clear explanation to stagnation, recessions and crises, including the latest Global Financial Crisis of 2007-8. With a central focus on the role played by government spending, deficits and debt as well as the setting of interest rates, the chapters propose alternative policies that can be used by central banks and fiscal authorities to deal with problems of income inequality, unemployment and slow productivity.
Author: Yilin Hou
Publisher: Springer Science & Business Media
ISBN: 1461460611
Category : Business & Economics
Languages : en
Pages : 367
Get Book Here
Book Description
This book is the first comprehensive, full-scale treatment of the law, politics and economics with regard to the policies and policy instruments for budget stabilization at the state level. Covering the period from 1946 through 2008 in the United States, it provides details on the methods and results of empirical tests of the effects of budget stabilization instruments on government operations, public service provision, and some other aspects of social and economic life. With the lingering effects of the most recent financial crisis and economic downturn, and the subsequent Tea Party movement advocating smaller government and deficit reduction, this book carries timely and important theoretical as well as practical implications, particularly in regard to the potential for counter-cyclical fiscal policy in mitigating negative impacts during a recession. The first contribution of the book is in public finance theory: it provides insights into the applications of the stabilization function in the context of strong government, thereby refining Keynesianism. The second aspect is in Public Choice: the creation and functioning of budget stabilization funds offer extra evidence to demonstrate that the general public provides input and voice in more than the conventional ways when it comes to policy making, even in an area dominated by strong government. The third aspect is in policy making, exploring the opportunities for refining policy tools in preparation for future downturns.
Author: Maria Antoinette Silgoner
Publisher: International Monetary Fund
ISBN: 1451859287
Category : Business & Economics
Languages : en
Pages : 30
Get Book Here
Book Description
We study the smoothing impact of fiscal stabilizers (proxied by government expenditures or revenues) on business cycle volatility for a panel of EU countries in the period 1970-99. The results show that the business cycle volatility smoothing effect of fiscal stabilizers may revert at high levels. We present evidence that for government expenditure ratios exceeding an estimated value of about 38 percent, a further expansion in the size of the government could actually lead to an increase in cyclical volatility. This may call for a reconsideration of the use of fiscal stabilizers for business cycle smoothing.
Author: Mr.Carlo Cottarelli
Publisher: International Monetary Fund
ISBN: 1455201383
Category : Business & Economics
Languages : en
Pages : 16
Get Book Here
Book Description
The size of government is a commonly used variable in many analytical studies on the effects of fiscal policy. An accepted practice is to measure it as the ratio of government spending to GDP. However, this is not the correct metric when computing the stabilization effects of nondiscretionary fiscal policy. Intuitively, public spending does not react to cyclical conditions as much as taxes do - as reflected in the standard zero-one elasticity assumptions for spending and revenue, respectively. This paper shows that the revenue to GDP ratio is the appropriate indicator of government size for the purpose of assessing the stabilization effects of nondiscretionary fiscal policy.
