Fiscal Issues In Macroeconomic Stabilization

Author : Richard W. Kopcke,Geoffrey Matthew Bemis Tootell,Robert K. Triest
Publisher : Unknown
Page : 408 pages
File Size : 49,5 Mb
Release : 2006
Category : Business & Economics
ISBN : UCSC:32106018378684

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The Macroeconomics of Fiscal Policy by Richard W. Kopcke,Geoffrey Matthew Bemis Tootell,Robert K. Triest Pdf

Leading academics and former policy makers assess the effectiveness of postwar American fiscal policy as questions about the role of fiscal policy once again come to the forefront of economic research and debate. The United States's post-World War II emphasis on activist fiscal policy for short-term economic stabilization was called into question in the 1960s, and by the late 1980s was superseded by the view that fiscal policy should focus on long-run structural concerns. For the past two decades both public policy and economic research emphasized monetary policy as a stabilization tool. But there remain issues in American macroeconomic policy having to do with budget deficits, present and projected, as well as a recent revival of interest in fiscal policy as a stabilization tool. Overall, the academic pendulum is swinging back towards a renewed consideration of fiscal policy. This volume brings together leading researchers and policy makers to assess the effectiveness and consequences of fiscal policy. Drawing on postwar policy experience and recent economic research, this book offers a state-of-the-art consideration of where fiscal policy stands today. Contributors address both the appropriateness of fiscal policy as a tool for short-run macroeconomic stabilization and the longer-term impact of fiscal decisions and economic policy. Topics covered include the legacy of the Reagan administration's tax cuts; whether public policy has encouraged such behavior as "overconsumption," which may foster persistent budget and trade deficits; and, in light of recent experience, how and when fiscal policy might be appropriate as a short-term stabilization tool. Contributors Alan J. Auerbach, Susanto Basu, Olivier J. Blanchard, Alan S. Blinder, Barry P. Bosworth, W. Elliott Brownlee, William H. Buiter, Jonathan Coppel, Jean-Philippe Cotis, Luiz de Mello, James S. Duesenberry, Douglas W. Elmendorf, Eric Engen, Jeffrey A. Frankel, Benjamin M. Friedman, Richard W. Kopcke, Catherine L. Mann, Van Doorn Ooms, Rudolph G. Penner, Alice M. Rivlin, Christopher A. Sims, C. Eugene Steuerle, Geoffrey M.B. Tootell, Robert K. Triest, Edwin M. Truman

Author : Anonim
Publisher : World Bank Publications
Page : 31 pages
File Size : 51,6 Mb
Release : 2024-06-25
Category : Electronic
ISBN : 8210379456XXX

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Fiscal Issues in Macroeconomic Stabilization by Anonim Pdf

Author : Lance Taylor
Publisher : Unknown
Page : 36 pages
File Size : 50,9 Mb
Release : 1988
Category : Budget deficits
ISBN : IND:30000061383968

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Fiscal Issues in Macroeconomic Stabilization by Lance Taylor Pdf

Fiscal austerity's threat to normal policy goals looms even larger because many of its effects are unexpected and poorly understood.

Author : Mr.Xavier Debrun,Radhicka Kapoor
Publisher : International Monetary Fund
Page : 48 pages
File Size : 53,7 Mb
Release : 2010-05-01
Category : Business & Economics
ISBN : 9781455200702

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Fiscal Policy and Macroeconomic Stability by Mr.Xavier Debrun,Radhicka Kapoor Pdf

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 : Hassan Bougrine,Louis-Philippe Rochon
Publisher : Edward Elgar Publishing
Page : 360 pages
File Size : 52,7 Mb
Release : 2020-07-31
Category : Business & Economics
ISBN : 9781786439574

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Economic Growth and Macroeconomic Stabilization Policies in Post-Keynesian Economics by Hassan Bougrine,Louis-Philippe Rochon Pdf

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 : Giancarlo Corsetti,Mr.Keith Kuester,Mr.Andre Meier,Mr.Gernot J. Mueller
Publisher : International Monetary Fund
Page : 56 pages
File Size : 53,8 Mb
Release : 2012-01-01
Category : Business & Economics
ISBN : 9781463977078

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Sovereign Risk, Fiscal Policy, and Macroeconomic Stability by Giancarlo Corsetti,Mr.Keith Kuester,Mr.Andre Meier,Mr.Gernot J. Mueller Pdf

This paper analyzes the impact of strained government finances on macroeconomic stability and the transmission of fiscal policy. Using a variant of the model by Curdia and Woodford (2009), we study a "sovereign risk channel" through which sovereign default risk raises funding costs in the private sector. If monetary policy is constrained, the sovereign risk channel exacerbates indeterminacy problems: private-sector beliefs of a weakening economy may become self-fulfilling. In addition, sovereign risk amplifies the effects of negative cyclical shocks. Under those conditions, fiscal retrenchment can help curtail the risk of macroeconomic instability and, in extreme cases, even stimulate economic activity.

Author : Ms.Elva Bova,Mr.Paulo A. Medas,Mr.Tigran Poghosyan
Publisher : International Monetary Fund
Page : 28 pages
File Size : 50,5 Mb
Release : 2016-02-23
Category : Business & Economics
ISBN : 9781475596465

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Macroeconomic Stability in Resource-Rich Countries by Ms.Elva Bova,Mr.Paulo A. Medas,Mr.Tigran Poghosyan Pdf

Resource-rich countries face large and persistent shocks, especially coming from volatile commodity prices. Given the severity of the shocks, it would be expected that these countries adopt countercyclical fiscal policies to help shield the domestic economy. Taking advantage of a new dataset covering 48 non-renewable commodity exporters for the period 1970-2014, we investigate whether fiscal policy does indeed play a stabilizing role. Our analysis shows that fiscal policy tends to have a procyclical bias (mainly via expenditures) and, contrary to others, we do not find evidence that this bias has declined in recent years. Adoption of fiscal rules does not seem to reduce procyclicality in a significant way, but the quality of political institutions does matter. Finally, non-commodity revenues tend to respond only to persistent changes in commodity prices.

Author : Ole Roste
Publisher : Routledge
Page : 214 pages
File Size : 48,9 Mb
Release : 2017-09-08
Category : Business & Economics
ISBN : 9781351504881

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Monetary Policy and Macroeconomic Stabilization by Ole Roste Pdf

As a fundamental review and critique of activist economic policies, this book is a unique contribution to classical political economy. "Monetary Policy and Macroeconomic Stabilization" is about macroeconomic stabilization policy, with emphasis on the value of a distinct national monetary policy to growth. Ole Bjorn Roste's argument is for public officials to restrain themselves in the pursuit of policy. As the author notes: when you know less, you should do less.The history of modern macroeconomics started in 1936 with the publication of Keynes' "General Theory of Employment, Interest, and Money". The problems of the Great depression of the 1930s paved the way for a change of focus, from the long run to economic fluctuations in the short run, and from nominal to real variables, such as unemployment and aggregate output.Keynes offered clear policy implications in tune with the times. Because economic adjustment was slow, waiting for the economy to recover by itself was irresponsible. Particularly fiscal policy was essential to return to high employment. Monetary policy could affect aggregate demand through Interest rates, but was less important. Roste discusses the role of monetary policy, starting out with the implications of the theory of optimum currency areas (OCAs). This is followed by estimates of the output loss associated with disinflation policy (the sacrifice ratio) for six OECD economies. Further, Roste models the dynamic adjustment to negative, local labor-market shocks, with particular relevance to Scandinavia, in a final section.The idea that governments should pursue stabilizing fiscal or monetary policies with regard to real variables is often taken for granted by the public, if not by economists. Among the reasons for skepticism, is the presence of differing views on how economies really work, that the state of a given economy becomes known only after a time lag, and that economic agents react to policy and expectations of policy. For these reasons, the effects of policy are generally uncertain. This book explains why the role of history is critical to the study of macroeconomics.p>

Author : Guillermo E. Perry,Luis Serv n,Rodrigo Suesc n
Publisher : World Bank Publications
Page : 350 pages
File Size : 53,6 Mb
Release : 2007-10-19
Category : Business & Economics
ISBN : 0821370855

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Fiscal Policy, Stabilization, and Growth by Guillermo E. Perry,Luis Serv n,Rodrigo Suesc n Pdf

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 : Farrokh K. Langdana
Publisher : Springer Nature
Page : 358 pages
File Size : 48,7 Mb
Release : 2022-04-04
Category : Business & Economics
ISBN : 9783030920586

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Macroeconomic Policy by Farrokh K. Langdana Pdf

This book is an applications-oriented text designed for individuals who desire a hands-on approach to analyzing the effects of fiscal and monetary policies. Significantly updated for the fourth edition, the text provides an understanding of the global economy in the wake of the COVID crisis, discussing topics such as pandemic related supply and demand-side shocks, the role of Modern Monetary Theory (MMT) in financing COVID rescue plans, the effect of the US, India, Eurozone and China’s post-COVID economies on emerging and transitioning economies, and the resurgence of inflation. This edition includes deeper coverage on the issue of budget deficit sustainability and on trade wars, especially in a global context, and revisits the life cycles of speculative asset price (SAP) bubbles, especially in the housing markets and in SPACs. The fourth edition contains several brand-new cases and media articles that are carefully positioned to relate explicitly to theory, and to look ahead to and preempt global macro situations and polices in the years to come. MBA students and Executive MBA students who appreciate the importance of monetary and fiscal analysis will find this text to be right on target. Financial analysts and individual investors who need to strip away economic myths and jargon and systematically examine and understand the effects of macro policies on variables such as inflation, output, employment and interest rates, will also find the book extremely useful.

Author : Mr.Mario I. Bléjer,Mr.Ke-young Chu
Publisher : International Monetary Fund
Page : 404 pages
File Size : 53,5 Mb
Release : 1989-06-15
Category : Business & Economics
ISBN : 1557750343

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Fiscal Policy, Stabilization, and Growth in Developing Countries by Mr.Mario I. Bléjer,Mr.Ke-young Chu Pdf

Edited by Mario I. Blejer and Ke-young Chu, this book investigates linkages among components of the public sector, as well as between macro and micro aspects of fiscal policy, in developing countries. It presents 13 papers prepared by economists of the IMF's Fiscal Affairs Department.

Author : Jean-Olivier Hairault,Pierre-Yves Hénin,Franck Portier
Publisher : Springer Science & Business Media
Page : 355 pages
File Size : 54,6 Mb
Release : 2012-12-06
Category : Business & Economics
ISBN : 9781461561736

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Business Cycles and Macroeconomic Stability by Jean-Olivier Hairault,Pierre-Yves Hénin,Franck Portier Pdf

Setting the issue "Most economists consider the marked increase in automatic stabilizers a highly favorable development with respect to maintenance of economic stability". Besides the rare privilege of having being signed by both Milton Friedman and Paul Samuelson (Depres,Friedman, Hart, Samuelson, and Wallace [1950]), among others, this sentence expressed as soon as 1950 the consensus view on the stabilizing effect of fiscal rules governing tax revenue and public expendi tures and transfers. This positive ex ante assessment will have been confirmed ex post as part of the explanation for post war stabilization (Burns [1960], de Long and Summers [1986], Moore and Zarnovitz [1986]). However, it becomes disputed in both its positive and normative aspects. Many institutional changes since the eighties point at curbing back the transfer mechanisms underlying automatic stabilizers, and legal restraints on deficits such as the US balanced budget amendment or the European Maastricht criteria would involve serious risks for the future of stabilizers. Under such rules "the government would become, almost inevitally, a destabilizer rather than a stabilizer" said Joseph Stiglitz, quoted by the New York Times (April 1995)). "Built-in stabilizers are automatic fiscal adjustments that reduce the national income multiplier and thus cushion the effects of changes in autonomous spend ing on the level of income" (Pechman [1987]). Early analyses of the automatic fiscal stabilizers include the contributions of A. G. Hart [1945], R. Musgrave and M. Miller (1948) and E. C. Brown (1955).

Author : Sangyup Choi,Davide Furceri,João Tovar Jalles
Publisher : International Monetary Fund
Page : 48 pages
File Size : 53,9 Mb
Release : 2017-09-05
Category : Business & Economics
ISBN : 9781484318508

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Fiscal Stabilization and Growth by Sangyup Choi,Davide Furceri,João Tovar Jalles Pdf

Medium-term growth can be enhanced by fiscal stabilization. However, to date, no systematic effort has been made to study the specific channels through which fiscal stabilization affects growth. This paper examines the effect of fiscal stabilization on industrial growth and how this effect depends on different technological characteristics. It does so by applying a difference-in-difference approach to an unbalanced panel of 22 manufacturing industries for 55 advanced and developing economies over the period 1970-2014. The results suggest that fiscal stabilization fosters growth in industries with: i) higher external financial dependence and lower asset fixity; ii) higher degree of labor intensity; iii) higher investment lumpiness and relationship-specific input usage. These effects tend to be larger during economic recessions. The results are robust to different measures of fiscal stabilization and the inclusion of various interactions between a broad set of macroeconomic variables and production technologies.

Author : Anonim
Publisher : Unknown
Page : 0 pages
File Size : 50,9 Mb
Release : 2012
Category : Country risk
ISBN : OCLC:1181084986

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Sovereign Risk, Fiscal Policy, and Macroeconomic Stability by Anonim Pdf

This paper analyzes the impact of strained government finances on macroeconomic stability and the transmission of fiscal policy. Using a variant of the model by Curdia and Woodford (2009), we study a 'sovereign risk channel' through which sovereign default risk raises funding costs in the private sector. If monetary policy is constrained, the sovereign risk channel exacerbates indeterminacy problems: private-sector beliefs of a weakening economy may become self-fulfilling. In addition, sovereign risk amplifies the effects of negative cyclical shocks. Under those conditions, fiscal retrenchment can help curtail the risk of macroeconomic instability and, in extreme cases, even stimulate economic activity.

Author : Giancarlo Corsetti
Publisher : Unknown
Page : 55 pages
File Size : 46,9 Mb
Release : 2012-01-01
Category : Country risk
ISBN : 1463933185

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Sovereign Risk, Fiscal Policy, and Macroeconomic Stability by Giancarlo Corsetti Pdf

This paper analyzes the impact of strained government finances on macroeconomic stability and the transmission of fiscal policy. Using a variant of the model by Curdia and Woodford (2009), we study a "sovereign risk channel" through which sovereign default risk raises funding costs in the private sector. If monetary policy is constrained, the sovereign risk channel exacerbates indeterminacy problems: private-sector beliefs of a weakening economy may become self-fulfilling. In addition, sovereign risk amplifies the effects of negative cyclical shocks. Under those conditions, fiscal retrenchment can help curtail the risk of macroeconomic instability and, in extreme cases, even stimulate economic activity.