Expansionary Fiscal Contractions
Author : Vincent Hogan
Publisher :
Page : 19 pages
File Size : 27,57 MB
Release : 2001
Category : Economics
ISBN :
Author : Vincent Hogan
Publisher :
Page : 19 pages
File Size : 27,57 MB
Release : 2001
Category : Economics
ISBN :
Author : Vincent Hogan
Publisher :
Page : 17 pages
File Size : 41,27 MB
Release : 2003
Category : Economics
ISBN :
Author : Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 41 pages
File Size : 34,23 MB
Release : 2011-07-01
Category : Business & Economics
ISBN : 1455294691
This paper investigates the short-term effects of fiscal consolidation on economic activity in OECD economies. We examine the historical record, including Budget Speeches and IMFdocuments, to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Using this new dataset, our estimates suggest fiscal consolidation has contractionary effects on private domestic demand and GDP. By contrast, estimates based on conventional measures of the fiscal policy stance used in the literature support the expansionary fiscal contractions hypothesis but appear to be biased toward overstating expansionary effects.
Author : Istv n Bencz‚s
Publisher : Central European University Press
Page : 282 pages
File Size : 40,50 MB
Release : 2008-01-01
Category : Business & Economics
ISBN : 9789639776012
Fiscal consolidation has significant short-term costs which can dampen economic growth. This widely shared consensus in the literature on political economy has made fiscal adjustment highly unpopular among rational politicians. By critically analyzing the international literature and building on evidence from European countries, Benczes conducts a systematic analysis to find out whether it is possible to experience fiscal consolidation and economic growth at the same time, even in the short run.
Author : Frank Barry
Publisher :
Page : 18 pages
File Size : 43,28 MB
Release : 1996
Category : Fiscal policy
ISBN :
Author : Francesco Giavazzi
Publisher :
Page : 72 pages
File Size : 43,22 MB
Release : 1990
Category : Commerce
ISBN :
According to conventional wisdom, a fiscal consolidation is likely to contract real aggregate demand. It has often been argued, however, that this conclusion is misleading as it neglects the role of expectations of future policy: if the fiscal consolidation is read by the private sector as a signal that the share of government spending in GDP is being permanently reduced, households will revise upwards their estimate of their permanent income, and will raise current and planned consumption. Only the empirical evidence can sort out which of these two contending views about fiscal policy is more appropriate -- i.e how often the contractionary effect of a fiscal consolidation prevails on its expansionary expectational effect. This paper brings new evidence to bear on this issue drawing on the European exercise in fiscal rectitude of the 1980s, and focusing, in particulars on its two most extreme cases -- Denmark and Ireland. We find that at least in the experience of these two countries the expectations' view has a serious claim to empirical relevance.
Author : Michael U. Bergman
Publisher :
Page : 0 pages
File Size : 47,70 MB
Release : 2000
Category :
ISBN :
Author : Tim Congdon
Publisher :
Page : 0 pages
File Size : 50,24 MB
Release : 2015
Category :
ISBN :
Textbook orthodoxy maintains that increases in the cyclically adjusted budget balance (i.e. reductions in the deficit) withdraw demand from an economy. Those Keynesian economists who believe that fiscal policy is the most powerful single influence on changes in demand expect 'fiscal contraction' to be accompanied by below-trend growth or even declines in output. This article, a response to Martin Wolf's 2013 Wincott Memorial Lecture, considers this Keynesian view. Using a database prepared by the International Monetary Fund, it shows that since the 1980s 'expansionary fiscal contractions' have been the norm and not the exception in the USA and the UK. Keynesian support for fiscal activism is unsupported by a large body of recent evidence.
Author : U. Michael Bergman
Publisher :
Page : 21 pages
File Size : 17,98 MB
Release : 2000
Category :
ISBN :
Author : Frank Barry
Publisher :
Page : 27 pages
File Size : 47,95 MB
Release : 1992
Category : Economic development
ISBN :