The Macroeconomic Effects Of Fiscal Consolidation In Emerging Economies Evidence From Latin America

The Macroeconomic Effects Of Fiscal Consolidation In Emerging Economies Evidence From Latin America Book in PDF, ePub and Kindle version is available to download in english. Read online anytime anywhere directly from your device. Click on the download button below to get a free pdf file of The Macroeconomic Effects Of Fiscal Consolidation In Emerging Economies Evidence From Latin America book. This book definitely worth reading, it is an incredibly well-written.

The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America

Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh
The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies Evidence from Latin America Book PDF

Author : Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 42 pages
File Size : 52,7 Mb
Release : 2018-06-13
Category : Business & Economics
ISBN : 9781484361696

Get Book

The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America by Mr.Yan Carriere-Swallow,Mr.Antonio David,Mr.Daniel Leigh Pdf

We estimate the short-term effects of fiscal consolidation on economic activity in 14 countries in Latin America and the Caribbean. We examine contemporaneous policy documents to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Based on this narrative dataset, our estimates suggest that fiscal consolidation has contractionary effects on GDP, consistent with a multiplier of 0.9. We find these effects to be close to those in OECD countries based on a similarly constructed dataset (Devries and others, 2011). We also find similar estimation results for the two groups of economies for the effect of fiscal consolidation on the external current account balance, providing support for the twin deficits hypothesis.

A New Action-based Dataset of Fiscal Consolidation in Latin America and the Caribbean

Mr.Antonio David,Mr.Daniel Leigh
A New Action based Dataset of Fiscal Consolidation in Latin America and the Caribbean Book PDF

Author : Mr.Antonio David,Mr.Daniel Leigh
Publisher : International Monetary Fund
Page : 67 pages
File Size : 48,9 Mb
Release : 2018-04-26
Category : Business & Economics
ISBN : 9781484353059

Get Book

A New Action-based Dataset of Fiscal Consolidation in Latin America and the Caribbean by Mr.Antonio David,Mr.Daniel Leigh Pdf

This paper presents a new database of fiscal consolidations for 14 Latin American and Caribbean economies during 1989-2016. We focus on discretionary changes in taxes and government spending primarily motivated by a desire to reduce the budget deficit and long-term fiscal health and not by a response to prospective economic conditions. To identify the motivation and budgetary impact of the fiscal policy changes, we examine contemporaneous policy documents, including Budgets, central bank reports, and IMF and OECD reports. The resulting series can be used to estimate the macroeconomic effects of fiscal consolidation for these economies

The Economic Effects of Fiscal Consolidation with Debt Feedback

Mr.Marcello M. Estevão,Issouf Samaké
The Economic Effects of Fiscal Consolidation with Debt Feedback Book PDF

Author : Mr.Marcello M. Estevão,Issouf Samaké
Publisher : International Monetary Fund
Page : 51 pages
File Size : 40,6 Mb
Release : 2013-05-31
Category : Business & Economics
ISBN : 9781484304488

Get Book

The Economic Effects of Fiscal Consolidation with Debt Feedback by Mr.Marcello M. Estevão,Issouf Samaké Pdf

The past several years of recession and slow recovery have raised much interest on the effect of fiscal stimulus on economic activity, even as high public debts in many countries would call for fiscal consolidation. To evaluate the delicate balance between stimulus and consolidation requires measuring the size of fiscal multipliers, which often depends on having quarterly data so that exogenous fiscal policy shocks can be identified. We estimate fiscal multipliers using a novel methodology for identifying fiscal shocks within a structural vector autoregressive approach using annual data while controling for debt feedback effects. The estimation focuses on regions with scarce quarterly data (mostly low-income countries), and uses results for advanced economies, emerging market countries, and other broad groupings for which alternative estimates are available to validate the methodology. Differently from advanced and emerging market economies, fiscal consolidation in low-income countries has only a small temporary negative effect on growth while raising medium-term output. Shifting the composition of public spending toward capital expenditure further supports long-run growth.

Macroeconomic Effects of Tax Rate and Base Changes: Evidence from Fiscal Consolidations

Ms.Era Dabla-Norris,Frederico Lima
Macroeconomic Effects of Tax Rate and Base Changes Evidence from Fiscal Consolidations Book PDF

Author : Ms.Era Dabla-Norris,Frederico Lima
Publisher : International Monetary Fund
Page : 47 pages
File Size : 53,9 Mb
Release : 2018-10-01
Category : Business & Economics
ISBN : 9781484379066

Get Book

Macroeconomic Effects of Tax Rate and Base Changes: Evidence from Fiscal Consolidations by Ms.Era Dabla-Norris,Frederico Lima Pdf

This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.

Macroeconomic Effects of Tax Rate and Base Changes: Evidence from Fiscal Consolidations

Ms.Era Dabla-Norris,Frederico Lima
Macroeconomic Effects of Tax Rate and Base Changes Evidence from Fiscal Consolidations Book PDF

Author : Ms.Era Dabla-Norris,Frederico Lima
Publisher : International Monetary Fund
Page : 47 pages
File Size : 45,5 Mb
Release : 2018-09-28
Category : Business & Economics
ISBN : 9781484377451

Get Book

Macroeconomic Effects of Tax Rate and Base Changes: Evidence from Fiscal Consolidations by Ms.Era Dabla-Norris,Frederico Lima Pdf

This paper examines the macroeconomic effects of tax changes during fiscal consolidations. We build a new narrative dataset of tax changes during fiscal consolidation years, containing detailed information on the expected revenue impact, motivation, and announcement and implementation dates of nearly 2,500 tax measures across 10 OECD countries. We analyze the macroeconomic impact of tax changes, distinguishing between tax rate and tax base changes, and further separating between changes in personal income, corporate income, and value added tax. Our results suggest that base broadening during fiscal consolidations leads to smaller output and employment declines compared to rate hikes, even when distinguishing between tax types.

Fiscal Consolidation and Firm Level Productivity: Evidence from Advanced Economies

Maxwell Tuuli,Ngo Van Long
Fiscal Consolidation and Firm Level Productivity Evidence from Advanced Economies Book PDF

Author : Maxwell Tuuli,Ngo Van Long
Publisher : International Monetary Fund
Page : 52 pages
File Size : 42,8 Mb
Release : 2022-07
Category : Business & Economics
ISBN : 9798400214462

Get Book

Fiscal Consolidation and Firm Level Productivity: Evidence from Advanced Economies by Maxwell Tuuli,Ngo Van Long Pdf

Productivity dispersion across countries has led to several studies on the determinants of firm level productivity and the role of macroeconomic policies in determining productivity. In this paper, we investigate the effect of fiscal consolidation on firm level productivity in 12 advanced economies by combining an updated dataset of fiscal consolidation measures with firm level productivity. We find that fiscal consolidation (i.e., discretionary tax hikes and spending cuts), is detrimental to firm level productivity in advanced economies. We also find that high levels of fiscal consolidation are particularly harmful to firm level productivity compared to lower levels of fiscal consolidation. Furthermore, we find that tax based fiscal consolidation hinders firm level productivity more compared to spending based fiscal consolidation. This implies that the size and composition of fiscal consolidation matter in understanding the relationship between fiscal consolidation and firm level productivity.

How Big are Fiscal Multipliers in Latin America?

Jorge Restrepo
How Big are Fiscal Multipliers in Latin America Book PDF

Author : Jorge Restrepo
Publisher : International Monetary Fund
Page : 23 pages
File Size : 40,7 Mb
Release : 2020-01-31
Category : Business & Economics
ISBN : 9781513526836

Get Book

How Big are Fiscal Multipliers in Latin America? by Jorge Restrepo Pdf

This paper uses the strategy and data of Blanchard and Perotti (BP) to identify fiscal shocks and estimate fiscal multipliers for the United States. With these results, it computes the cumulative multiplier of Ramey and Zubairy (2018), now common in the literature. It finds that, contrary to the peak and through multipliers reported by BP, the cumulative tax multiplier is much larger than the cumulative spending one. Hence, the conclusions depend on the definition of multiplier. This methodology is also used to estimate the effects of fiscal shocks on economic activity in eight Latin American countries. The results suggest that the fiscal multipliers vary significantly across countries, and in some cases multipliers are larger than previously estimated.

Colombia

International Monetary Fund. Western Hemisphere Dept.
Colombia Book PDF

Author : International Monetary Fund. Western Hemisphere Dept.
Publisher : International Monetary Fund
Page : 37 pages
File Size : 46,9 Mb
Release : 2024-03-28
Category : Business & Economics
ISBN : 9798400271168

Get Book

Colombia by International Monetary Fund. Western Hemisphere Dept. Pdf

Selected Issues

Fiscal Consolidation: Taking Stock of Success Factors, Impact, and Design

Vybhavi Balasundharam,Olivier Basdevant,Dalmacio Benicio,Andrew Ceber,Yujin Kim,Luca Mazzone,Hoda Selim,Yongzheng Yang
Fiscal Consolidation Taking Stock of Success Factors Impact and Design Book PDF

Author : Vybhavi Balasundharam,Olivier Basdevant,Dalmacio Benicio,Andrew Ceber,Yujin Kim,Luca Mazzone,Hoda Selim,Yongzheng Yang
Publisher : International Monetary Fund
Page : 39 pages
File Size : 51,8 Mb
Release : 2023-03-17
Category : Electronic
ISBN : 9798400235221

Get Book

Fiscal Consolidation: Taking Stock of Success Factors, Impact, and Design by Vybhavi Balasundharam,Olivier Basdevant,Dalmacio Benicio,Andrew Ceber,Yujin Kim,Luca Mazzone,Hoda Selim,Yongzheng Yang Pdf

Fiscal Consolidation: Taking Stock of Success Factors, Impact, and Design

The Return of Expansionary Austerity: Firms’ Investment Response to Fiscal Adjustments in Emerging Markets

Mr. Nicolas E Magud,Samuel Pienknagura
The Return of Expansionary Austerity Firms Investment Response to Fiscal Adjustments in Emerging Markets Book PDF

Author : Mr. Nicolas E Magud,Samuel Pienknagura
Publisher : International Monetary Fund
Page : 55 pages
File Size : 48,6 Mb
Release : 2022-04-08
Category : Business & Economics
ISBN : 9798400204845

Get Book

The Return of Expansionary Austerity: Firms’ Investment Response to Fiscal Adjustments in Emerging Markets by Mr. Nicolas E Magud,Samuel Pienknagura Pdf

We study the response of corporate investment in Emerging Markets to unexpected fiscal shocks. We find that, although firm-level investment decreases on impact following unexpected public expenditure adjustments (classical Keynesian multiplier effect), it quickly rises above pre-shock levels. The rebound in investment is facilitated by fiscal space, flexible exchange rates, and more predictable fiscal policy. We also show that the composition of fiscal adjustments matters for investment’s response—compared to public investment adjustments, reductions in public consumption lead to larger private investment contractions on impact, but drive private investment to above pre-shock levels. Finally, we exploit firm-level heterogeneity in several dimensions, including to show that corporate investment’s recovery is stronger in firms in the tradable sector and in larger and less indebted firms, and to show that the long-run benefits to economic activity of the fiscal shock appear to outweigh its short-run costs.

External Sector Report 2021

INTERNATIONAL MONETARY FUND.
External Sector Report 2021 Book PDF

Author : INTERNATIONAL MONETARY FUND.
Publisher : International Monetary Fund
Page : 110 pages
File Size : 54,9 Mb
Release : 2021-08-02
Category : Business & Economics
ISBN : 9781513576671

Get Book

External Sector Report 2021 by INTERNATIONAL MONETARY FUND. Pdf

Produced since 2012, the IMF’s annual External Sector Report analyzes global external developments and provides multilaterally consistent assessments of external positions, including current accounts, real exchange rates, external balance sheets, capital flows, and international reserves, of the world’s largest economies, representing over 90 percent of global GDP. Chapter 1 discusses the evolution of global external positions in 2020, external developments throughout the COVID-19 crisis, and policy priorities for reducing excess imbalances over the medium term. Chapter 2 analyzes how the unprecedented fiscal support provided in response to the COVID-19 crisis has affected external positions at the individual and global level. It also focuses on how withdrawal of such support will impact external positions in the medium term. Chapter 3, “Individual Economy Assessments,” provides details on the different aspects of the overall external assessment and associated policy recommendations for 30 economies. This year’s report and associated external assessments are based on the latest vintage of the External Balance Assessment (EBA) methodology and on data and IMF staff projections as of June 30, 2021.

Can Fiscal Consolidation Announcements Help Anchor Inflation Expectations?

Mr. Antonio David,Samuel Pienknagura,Juan Yepez
Can Fiscal Consolidation Announcements Help Anchor Inflation Expectations Book PDF

Author : Mr. Antonio David,Samuel Pienknagura,Juan Yepez
Publisher : International Monetary Fund
Page : 39 pages
File Size : 55,8 Mb
Release : 2024-03-15
Category : Business & Economics
ISBN : 9798400268267

Get Book

Can Fiscal Consolidation Announcements Help Anchor Inflation Expectations? by Mr. Antonio David,Samuel Pienknagura,Juan Yepez Pdf

In this paper, we use quarterly data and a novel database on fiscal policy consolidation announcements, for a sample of advanced economies and emerging markets to quantify the effects of fiscal tightening on inflation expectations. We find that fiscal consolidation announcements reduce inflation expectations over the medium-term (three and five-years ahead), but not in the short-term (one-year ahead). There is also some evidence that consolidation announcements reduce “disagreement” about expected future inflation at longer horizons. The inflation anchoring role of consolidation announcements is enhanced by the strength of a country’s fiscal and monetary frameworks, and when fiscal and monetary policy work in tandem. In addition, we find that initial conditions matter—inflation expectation’s response to consolidation announcements is larger in periods of high contemporaneous inflation. With these results in hand, we show that the effectiveness of fiscal consolidation in controlling realized inflation depends greatly on the response of inflation expectations to consolidation announcements. These results show that fiscal policy is crucial to anchor inflation expectations and a key element of a credible disinflationary process.

Public Debt Dynamics and the Impact of Fiscal Policy

Nikhil Patel,Mr. Adrian Peralta Alva
Public Debt Dynamics and the Impact of Fiscal Policy Book PDF

Author : Nikhil Patel,Mr. Adrian Peralta Alva
Publisher : International Monetary Fund
Page : 50 pages
File Size : 51,6 Mb
Release : 2024-04-26
Category : Business & Economics
ISBN : 9798400273476

Get Book

Public Debt Dynamics and the Impact of Fiscal Policy by Nikhil Patel,Mr. Adrian Peralta Alva Pdf

Public debt-to-GDP ratios have undergone substantial fluctuations over both the short and long term. Most recently, global debt-to-GDP ratios peaked at 100% on average in 2020 due to COVID-19, retracting substantially by 2022. To understand what drives these movements, we propose a structural approach to debt decompositions based on a SVAR identified with narrative sign restrictions. We find that GDP growth shocks and the corresponding comovements of macroeconomic variables are the key drivers of debt to GDP, accounting for 40% of the observed yearly variation in 17 advanced economies since the 1980s. Discretionary fiscal policy changes, in turn, account for less than 20% of the observed changes. The analysis also finds the primary balance multiplier on GDP to be very small. We reconcile our results with the literature, underscoring the importance of accurate shock identification and accounting for cross-country heterogeneity.

Digitalization and Big Data for Resilience and Economic Intelligence

Alina Mihaela Dima,Mihaela Kelemen
Digitalization and Big Data for Resilience and Economic Intelligence Book PDF

Author : Alina Mihaela Dima,Mihaela Kelemen
Publisher : Springer Nature
Page : 242 pages
File Size : 40,7 Mb
Release : 2022-03-05
Category : Business & Economics
ISBN : 9783030932862

Get Book

Digitalization and Big Data for Resilience and Economic Intelligence by Alina Mihaela Dima,Mihaela Kelemen Pdf

This book highlights the economic and social science perspectives in light of COVID-19. During 2020, leaders found themselves at historic crossroads, taking decisions under remarkable pressures and uncertainties. However, windows of opportunity are being created to shape the economic recovery, restore the health of the environment, develop sustainable business models, strengthen regional development, revitalize global cooperation, harness Industry 4.0, and redesign the social contracts, skills, and jobs. This book is an excellent resource for all those interested in economics and social sciences perspectives on digitalization and big data, especially in the light of the recent crisis determined by COVID-19. The chapters cover topics related to new models in entrepreneurship and innovation, sustainability and education, data science and digitalization, marketing and finance, etc., that will develop innovative instruments for countries, businesses, and education to revive after the crisis.

The Effectiveness of Fiscal Policy in Stimulating Economic Activity

Richard Hemming,Selma Mahfouz,Michael Kell
The Effectiveness of Fiscal Policy in Stimulating Economic Activity Book PDF

Author : Richard Hemming,Selma Mahfouz,Michael Kell
Publisher : International Monetary Fund
Page : 60 pages
File Size : 51,9 Mb
Release : 2002-12
Category : Business & Economics
ISBN : UCSD:31822032179210

Get Book

The Effectiveness of Fiscal Policy in Stimulating Economic Activity by Richard Hemming,Selma Mahfouz,Michael Kell Pdf

This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.