Download or read book Budgetary Consolidation in EMU written by Jürgen von Hagen and published by . This book was released on 2001 with total page 148 pages. Available in PDF, EPUB and Kindle. Book excerpt: Recoge: 1.Overview - 2.Quality and Success of Fiscal Adjustments - 3.Fiscal Consolidations in the 1990ś: A Detailed Account - 4.Budgeraty Institutions for Sustainable Public Finances - 5.Macroeconomic Aspects of the 1999ś Fiscal Adjustments - 6.Lessons for Future Budgetary Policies in the EMU - 7.References - 8.Appendices.
Download or read book Effects of the European Economic and Monetary Union EMU on Taxation and Interest Spending of National Governments written by Mr.Francesco P. Mongelli and published by International Monetary Fund. This book was released on 1997-07-01 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines the interest spending and taxation channels through which EMU could affect the public finances. It provides a framework for examining different views on a further narrowing of interest rate differentials. A model of Blanchard and Fischer is amended to analyze the two channels, and empirical evidence on the tax harmonization process is presented. The paper argues that “high-debt” and “high-tax” countries pursuing prudent fiscal policies could benefit the most from EMU: if monetary and widespread fiscal discipline are jointly established, interest rates could decline rapidly, while tax harmonization is likely to be gradual.
Download or read book Fiscal Policies in EMU Countries written by Francesco Forte and published by . This book was released on 2016 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: Purpose - The aim of the paper is to evaluate fiscal adjustments that have occurred in the Economic and Monetary Union (EMU) countries in the last 35 years, and their consequences on the economic growth process by using the mean group (MG) estimators.Design/methodology/approach - Our emphasis is on the effects of different composition of fiscal stimuli and consolidations. We compare the effects on the economic growth rate of different compositions of major fiscal changes. We use a cyclically adjusted value of the fiscal variables to leave aside variations of the fiscal variables induced by business cycle fluctuations.Findings - Our empirical research of the effects of large changes in fiscal policy, both in case of a fiscal consolidation and of fiscal stimulus in the 18EMUcountries from 1980 to 2015, shows that adjustments by cutting current expenditures, rather than by tax increases are more likely to boost economic growth. It also shows that cuts of investment expenditures may reduce GDP growth. During fiscal stimulus episodes, tax cuts and public investments are more likely to increase growth than current public expenditure.Originality/value - This is the first study devoted to the EMU countries. It should be underlined that the results obtained as for EMU countries are not necessarily applicable to other countries, as the different government size as well as different market institutions may influence the results.
Download or read book The Framework for Fiscal Policy in EMU written by Carmen Elena Flores and published by . This book was released on 2005 with total page 56 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary and Fiscal Policies in EMU written by Marco Buti and published by . This book was released on 2003 with total page 254 pages. Available in PDF, EPUB and Kindle. Book excerpt: Leading scholars and policy makers examine the challenges that are facing economic policies in the EMU today.
Download or read book The Policy Mix in the US and EMU written by António Afonso and published by . This book was released on 2018 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt: We use a SVAR approach to the effects of fiscal and monetary policies, as well as their interactions (policy mix) for the US and the Euro Area (EMU). Overall, our results show that these two cases are different from each other. First, while in the case of the US there is evidence of Keynesian monetary policy, the same is not true in the case of the EMU. Second, considering the effects of the global economic and financial crisis, there is evidence of non-Keynesian fiscal policy in the case of the EMU (expansionary fiscal consolidation), while it does not hold in the case of the US. Third, there is evidence supporting the traditional inverse relationship between monetary policy interest rates and inflation in the case of the US, whereas in the case of the EMU there is a price puzzle (frequent in SVAR studies). Fourth, the baseline model seems to be robust in the case of the US, when considering the effects of the economic and financial crisis 2007-2009, while the opposite holds in the case of the EMU. However, in both cases, the policies seem to act as complements. Another similarity appears when analysing the relationship between public spending and taxation, where there is evidence supporting a fiscal retrenchment.
Download or read book Fiscal Discipline in EMU Testing the Effectiveness of the Excessive Deficit Procedure written by Jasper de Jong and published by . This book was released on 2018 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Excessive Deficit Procedure (EDP), central to the Stability and Growth Pact, is criticized for both its procyclical effects and - in contrast - a perceived lack of enforcement. To test its actual effects, we construct a real-time database of EDP recommendations and estimate augmented real-time and ex-post fiscal reaction functions for a panel of EMU member states. We find that a 1% of GDP larger EDP recommendation leads to close to 1% of GDP of additional fiscal consolidation plans, and around 0.8% of actual consolidation. For countries in financial support programs we find that, while they did implement substantial consolidation measures, required and delivered consolidation efforts are less connected. Overall, our results suggest that EDP recommendations have substantially shaped euro area fiscal policy, especially in the years 2010-2014, when EDP recommendations were both largest and most frequent.
Download or read book Report on Public finances in EMU 2012 written by and published by . This book was released on 2012 with total page 348 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The annual Report on Public Finances in EMU brings together in a single publication a review of key policy developments and analytical findings in the area of the public finances. This year the report reviews the reform of the EU budgetary surveillance which entered into force in late 2011 and the status of the proposals for the further reforms currently under consideration. Moreover it describes the evolution of Member States' fiscal policies. It then studies the relationship between fiscal consolidation and growth (as captured by the fiscal multipliers) before moving on to present the impact of decentralization of tax and spending responsibilities on debt sustainability in the EU."--Cover.
Download or read book Promoting Prosperity and Stability written by European Commission. Directorate-General for Economic and Financial Affairs and published by . This book was released on 2008 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: The current issue focuses on the EU and primarily the EMU anchors for promoting stability and growth in the candidate and potential candidate countries. It is widely acknowledged that the EU accession prospect and the gradual insertion in the Economic and Monetary Union policy framework represent valuable instruments for the sustainable development of the aspiring members. For that purpose, the two papers published in this report -"The Euro as external anchor in the Western Balkans" and "Fiscal consolidation in candidate and potential candidate countries"--Represent an attempt of assessing the economic and policy benefits, as well as some of the main potential challenges posed by the euro external anchor and the EMU framework for the candidate and potential candidate countries. -- EU Bookshop.
Download or read book Public finances in EMU written by and published by . This book was released on 2002 with total page 379 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Monetary Integration Soft Budget Constraints and the EMU Sovereign Debt Crises written by Thushyanthan Baskaran and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: One possible explanation for the European sovereign debt crises is that the European Economic and Monetary Union (EMU) gave rise to consolidation fatigue or even deliberate over-borrowing. This paper explores the validity of this explanation by studying how three decisive stages in the history of the EMU affected public borrowing in EU member states: the signing of the Maastricht Treaty, the introduction of the Euro, and the suspension of the Stability and Growth Pact (SGP). The methodology relies on difference-in-difference regressions for 26 OECD countries over the 1975-2009 period. The findings indicate that the Maastricht treaty reduced deficits especially in traditionally high-deficit countries. In contrast, the introduction of the Euro and the watering down of the original SGP led on average to higher borrowing. These results indicate that the introduction of the Euro and the suspension of the SGP led to soft budget constraints in the EMU.
Download or read book Report on Public Finances in EMU written by and published by . This book was released on 2012 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: "The annual Report on Public Finances in EMU brings together in a single publication a review of key policy developments and analytical findings in the area of the public finances. This year the report reviews the reform of the EU budgetary surveillance which entered into force in late 2011 and the status of the proposals for the further reforms currently under consideration. Moreover it describes the evolution of Member States' fiscal policies. It then studies the relationship between fiscal consolidation and growth (as captured by the fiscal multipliers) before moving on to present the impact of decentralization of tax and spending responsibilities on debt sustainability in the EU."--Cover.
Download or read book Monitoring Fiscal Adjustments in the European Union and Emu written by Rolf Strauch and published by . This book was released on 2016 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: The international monitoring of public finances in EMU member states is an essential element of the Stability and Growth Pact. Part of evaluating government budgets involves determining the sustainability of the envisaged consolidation measures. The academic and political debate on this topic emphasises various criteria which suggest persistent consolidation efforts. The academic literature stresses the contribution which government consumption and transfer payments make to reducing the deficit. The literature . also indicates a significant reversal in previous trends which had been responsible for expanding the deficit. In its Convergence Report of 1998 and in background studies, the European Commission cited the reduction of primary expenditure as a criterion of sustainability. Although various criteria have been mentioned in the debate, it is important to note that the empirical support for these criteria is based largely on the same data and methods, which are subject to certain shortcomings ...Die internationale Überwachung der Entwicklung öffentlicher Finanzen in den Mitgliedstaaten der EWWU ist wesentlicher Bestandteil des Stabilitäts-und Wachstumspaktes. Teil der Bewertung der Staatshaushalte ist es, die Dauerhaftigkeit der angestrebten Konsolidierungsmaßnabmen zu beurteilen. Die wissenschaftliche und politische Diskussion zu diesem Thema betont verschiedene Kriterien, die auf anhaltende Konsolidierungsbemübungen hinweisen. In der wissenschaftlichen Literatur wird zum einen der Beitrag des Regierungskonsums und der Transferleistungen zur Verringerung des Defizits hervorgehoben. Darüber hinaus verweist die Literatur darauf, daß die Umkehrung vorheriger Trends, die für die Ausweitung des Defizits verantwortlich waren, von Bedeutung ist. Die Europäische Kommission hat in ihrem Konvergenzbericht von 1998 und in Hintergrundstudien die Reduzierung der primären Ausgaben als Nachhaltigkeitskriterium genannt. Obwohl verschiedene Kriterien in der Diskussion genannt werden, ist festzustellen, daß die empirische Fundierung dieser Kriterien weitgehend auf denselben Daten und Methoden beruhen, mit denen sich aber gewisse Nachteile verbinden.
Download or read book Governments and Promised Fiscal Consolidations written by Mr.Sanjeev Gupta and published by International Monetary Fund. This book was released on 2017-02-23 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper analyses the causes and consequences of fiscal consolidation promise gaps, defined as the distance between planned fiscal adjustments and actual consolidations. Using 74 consolidation episodes derived from the narrative approach in 17 advanced economies during 1978 – 2015, the paper shows that promise gaps were sizeable (about 0.3 percent of GDP per year, or 1.1 percent of GDP during an average fiscal adjustment episode). Both economic and political factors explain the gaps: for example, greater electoral proximity, stronger political cohesion and higher accountability were all associated with smaller promise gaps. Finally, governments which delivered on their fiscal consolidation plans were rewarded by financial markets and not penalized by voters.
Download or read book Fiscal Adjustments in OECD Countries written by Mr.Alberto Alesina and published by International Monetary Fund. This book was released on 1996-07-01 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies how the composition of fiscal adjustments influences their likelihood of “success”, defined as a long lasting deficit reduction, and their macroeconomic consequences. We find that fiscal adjustments which rely primarily on spending cuts on transfers and the government wage bill have a better chance of being successful and are expansionary. On the contrary fiscal adjustments which rely primarily on tax increases and cuts in public investment tend not to last and are contractionary. We discuss alterative explanations for these findings by studying both a full sample of OECD countries and by focusing on three case studies: Denmark, Ireland and Italy.
Download or read book EMU and Economic Policy in Europe written by Marco Buti and published by Edward Elgar Publishing. This book was released on 2002-01-01 with total page 520 pages. Available in PDF, EPUB and Kindle. Book excerpt: Explores issues surrounding the European Monetary Union, including the financial impact of the euro, the behavior of monetary and fiscal authorities, and the consequences of EU enlargement.
Download or read book Economics Politics and Budgets written by C. Mulas-Granados and published by Springer. This book was released on 2006-08-30 with total page 331 pages. Available in PDF, EPUB and Kindle. Book excerpt: Motivated by the proliferation of fiscal consolidation episodes in the advent of Monetary Union, this book explains the causes and consequences of fiscal policy in Europe, using theory and empirical evidence from the last four decades.
