Download or read book The expansionary Fiscal Contraction Hypothesis and Uncertainty about the Permanence of Fiscal Consolidations written by Michael U. Bergman and published by . This book was released on 2000 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Expansionary Fiscal Contraction in an Overlapping Generations Economy written by Frank Barry and published by . This book was released on 1996 with total page 18 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The expansionary Fiscal Contraction Hypothesis and Uncertainty about the Permanence of Fiscal Consolidations written by U. Michael Bergman and published by . This book was released on 2000 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Expansionary Austerity New International Evidence written by Mr.Daniel Leigh and published by International Monetary Fund. This book was released on 2011-07-01 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book An Examination of the expansionary Fiscal Contraction Hypothesis written by Frank Barry and published by . This book was released on 1992 with total page 27 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book In Praise of Expansionary Fiscal Contraction written by Tim Congdon and published by . This book was released on 2015 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Trimming the Sails written by Istv n Bencz‚s and published by Central European University Press. This book was released on 2008-01-01 with total page 282 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Expansionary Fiscal Contractions Evidence from Panel Data written by Vincent Hogan and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We examine the ability of the expansionary fiscal contraction (EFC) hypothesis to explain the performance of OECD economies during fiscal crises. We find some limited evidence in its favour: if public consumption is reduced in response to a fiscal crisis (as defined by a high level of debt), private consumption does seem to increase. However, the size of the effect is smaller than that typically found in other studies. Furthermore, the increase in private consumption is usually not sufficient to offset the direct effect of a reduction in public consumption on output - fiscal contractions are not literally expansionary.
Download or read book Expansionary Fiscal Contraction written by Duncan Needham and published by Cambridge University Press. This book was released on 2014-09-15 with total page 269 pages. Available in PDF, EPUB and Kindle. Book excerpt: This unique collection recasts a critical episode in post-war British economic history with profound implications for today's policy makers.
Download or read book Expansionary Fiscal Contractions written by Vincent Hogan and published by . This book was released on 2001 with total page 19 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Can severe fiscal contraction be expansionary tales of two small European countries written by Francesco Giavazzi and published by . This book was released on 1990 with total page 36 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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.
Download or read book Expansionary Fiscal Contraction written by Duncan Needham and published by Cambridge University Press. This book was released on 2014-09-15 with total page 269 pages. Available in PDF, EPUB and Kindle. Book excerpt: In its 1981 Budget, the Thatcher government discarded Keynesian counter-cyclical policies and cut Britain's public sector deficit in the depths of the worst UK recession since the 1930s. Controversially, the government argued that fiscal contraction would produce economic growth. In this specially commissioned volume, contributors examine recently released archives alongside firsthand accounts from key players within No. 10 Downing Street, HM Treasury and the Bank of England, to provide the first comprehensive treatment of this critical event in British economic history. They assess the empirical and theoretical basis for expansionary fiscal contraction, drawing clear parallels with contemporary debates on austerity in Europe, USA and Japan in the wake of the recent global financial crisis. This timely and thoughtful book will have broad appeal among economists, political scientists, historians and policy makers.
Download or read book Expansionary Fiscal Contractions and Equilibrium Indeterminacy written by Bernd Lucke and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: At several occasions, the 1980's witnessed non-keynesian effects of fiscal contractions. Most notably, cuts in government spending in Ireland, Denmark and Germany are known to have coincided with increases in private consumption spending. Self-fulfilling expectations about the effects of stabilization policies may explain these and a diversity of opposing experiences. This paper formulates a real business cycle model with equilibrium indeterminacy, which allows for sunspot fluctuations as well as for systematic consumption effects of government policy in either direction. Cointegration tests and Euler equation estimates suggest that the model is approximately in accord with German data. Parameter estimates imply that the nonkeynesian experiences are not due to self-fulfilling expectations but to the productivity effects of government-provided infrastructure.
Download or read book Expansionary Fiscal Austerity written by Owen Nie and published by . This book was released on 2020 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The expansionary fiscal contraction (EFC) hypothesis states that fiscal austerity can increase output or consumption when a country is under heavy debt burdens because it sends positive signal about the country's solvency situation and long-term economic wellbeing. Empirical tests of this hypothesis have suffered from identification concerns due to data sources and empirical methodology. Using a sample of OECD countries between 1978 and 2014, this paper combines new IMF narrative data and the proxy structural Vector Auto-regression (SVAR) method to examine whether fiscal austerities can be expansionary when debt levels are high. Fiscal austerities are measured as 1) narrative fiscal shocks and 2) structural shocks from a proxy SVAR. Additionally, this paper uses a model-based approach to determine the cutoff debt level beyond which EFC is expected to be observed. This paper finds empirical evidence in support of the EFC hypothesis for OECD countries: results for output are driven by changes in tax rates and are robust to how one defines a high-debt regime and how one measures austerity.
Download or read book Expansionary Effects of Fiscal Consolidation written by Matthieu Meyer and published by . This book was released on 2014 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The presented thesis investigates whether the Expansionary Fiscal Contraction hypothesis is supported by empirical data from the recent fiscal consolidation in Latvia. I use a structural VAR/event study approach based on the model developed by Blanchard and Perotti (2002). I find that the short-term effects of marginal changes in fiscal policy are in line with conventional Keynesian theory. The results suggest, however, that large fiscal consolidations can have expansionary effects on the economy.
Download or read book Fiscal Policy and the Case of Expansionary Fiscal Contraction in Ireland in the 1980s written by Huw Pill and published by . This book was released on 2004 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
