scholarly journals Can successful fiscal adjustments only be achieved by spending cuts?

2018 ◽  
Vol 54 ◽  
pp. 145-166 ◽  
Author(s):  
Rasmus Wiese ◽  
Richard Jong-A-Pin ◽  
Jakob de Haan
Keyword(s):  
Fiscal Adjustments ◽  
Spending Cuts

scholarly journals How vulnerable is the fiscal posture in Turkey?

Green Finance ◽  
2021 ◽  
Vol 3 (3) ◽  
pp. 319-336
Author(s):  
Cansın Kemal CAN ◽  
Keyword(s):  
Tax Reform ◽  
Vulnerability Index ◽  
Fiscal Sustainability ◽  
Test Results ◽  
Fragility Index ◽  
Causality Test ◽  
Fiscal Adjustments ◽  
The Government ◽  
Index Value ◽  
Spending Cuts

<abstract> <p>This study gauges the degree of fiscal vulnerability in Turkey by calculating the debt stabilising primary balance level and evaluates how this variable measures up against the actual primary balance levels for the 1978–2019 period. Based on this comparison, we build up a fiscal fragility index using the methodology described in <xref ref-type="bibr" rid="b15">Stoian (2012)</xref>. In addition, the Toda-Yamamoto causality test is carried out to detect the direction of causality among these two variables. The index-based analysis reveals that the fiscal performance of Turkey was chiefly satisfactory for the estimation period. Also, the Toda-Yamamoto causality test results imply a unidirectional causality from the required primary balance to real primary balance, suggesting that the government uses the primary balance to stabilise fiscal imbalances, which is an affirmative effort by the government to restore fiscal sustainability. Nevertheless, notwithstanding the implementation of corrective fiscal actions to preserve stability, the index value is steadily moving up in recent years, indicating a mounting fiscal vulnerability risk. Back-loading fiscal adjustments involving spending cuts, full-fledged tax reform, proper scrutiny of public expenses, etc., are among the prominent policy options available to the government to alter the ongoing unfavourable trend in the fiscal vulnerability index.</p> </abstract>

scholarly journals How does fiscal austerity impact on poverty and inequality? The Spanish case

2022 ◽  
Author(s):  
P. Campoy-Muñoz ◽  
M. A. Cardenete ◽  
F. J. De Miguel-Vélez ◽  
J. Pérez-Mayo
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Policy Reforms ◽  
The Great Recession ◽  
Public Deficit ◽  
Poverty And Inequality ◽  
Fiscal Adjustments ◽  
Fiscal Austerity ◽  
Redistributive Effects ◽  
Spending Cuts

AbstractThe aim of this paper is contributing to fill the gap between the macroeconomic effects of policy reforms and the microeconomic and social ones, considering simultaneously both kind of impacts. Regarding fiscal adjustments, concern about the sustainability of public deficit and debt resulting from the Great Recession led governments to adopt austerity measures in most European countries. Our analysis considers the redistributive effects of such adjustments for the Spanish economy by simulating a hypothetical reduction of public deficit and distinguishing between spending cuts and tax hikes. In terms of analytical approach, a Computable General Equilibrium (CGE) model and a microsimulation model are integrated to include the general equilibrium effects of these measures as well as the effects on income distribution. The results contribute to the growing but limited literature on the distributional effects of fiscal consolidations by showing that policymakers have to choose between more inequality or more poverty.

UK Fiscal Squeezes over a Century

2017 ◽  
Author(s):  
Christopher Hood ◽  
Rozana Himaz
Keyword(s):  
Data Sources ◽  
Fiscal Consolidation ◽  
Financial Outcomes ◽  
Financial Conditions ◽  
Deficit Reduction ◽  
Before And After ◽  
The Uk ◽  
Changes Over Time ◽  
Spending Cuts ◽  
Over Time

This chapter draws on historical statistics reporting financial outcomes for spending, taxation, debt, and deficit for the UK over a century to (a) identify quantitatively and compare the main fiscal squeeze episodes (i.e. major revenue increases, spending cuts, or both) in terms of type (soft squeezes and hard squeezes, spending squeezes, and revenue squeezes), depth, and length; (b) compare these periods of austerity against measures of fiscal consolidation in terms of deficit reduction; and (c) identify economic and financial conditions before and after the various squeezes. It explores the extent to which the identification of squeeze episodes and their classification is sensitive to which thresholds are set and what data sources are used. The chapter identifies major changes over time that emerge from this analysis over the changing depth and types of squeeze.

Welfare Reform in Greece

2017 ◽  
Author(s):  
Maria Petmesidou
Keyword(s):  
Sovereign Debt ◽  
Global Financial Crisis ◽  
Debt Crisis ◽  
Refugee Crisis ◽  
Social Investment ◽  
New Parties ◽  
Future Direction ◽  
The Global Financial Crisis ◽  
Spending Cuts ◽  
Large Sections

Greece developed a pension-heavy, clientelist, hybrid Mediterranean welfare state with many gaps in coverage. The global financial crisis of 2008 triggered a severe sovereign debt crisis, compelling the country to accept three bailout packages with stringent conditions as to spending cuts, privatization, and openness to international competition. Severe austerity has caused a protracted recession: the economy lost more than a quarter of its GDP between 2008 and 2015. The Mediterranean refugee crisis impacted severely on the country. New parties of the extreme left (SYRIZA) and extreme right (Golden Dawn) have gained support. SYRIZA was elected on an anti-austerity platform but failed to deliver and a fourth rescue package is under negotiation. The more likely future direction consists in an ever-tighter austerity programme with the immizeration of large sections of the population. A move towards neo-Keynesian intervention and social investment seems unlikely, given the level of debt and the bailout conditions.

Beyond the austerity-driven hypothesis: Political economic theses on penality and the recent prison population decline

2021 ◽  
pp. 147737082110006
Author(s):  
José A. Brandariz
Keyword(s):  
Prison Population ◽  
Population Decline ◽  
Theoretical Frameworks ◽  
The Past ◽  
Economic Forces ◽  
Global North ◽  
Economic Perspectives ◽  
Political Economic ◽  
The Impact ◽  
Spending Cuts

In what might be called the ‘austerity-driven hypothesis’, a consistent strand of literature has sought to explain the prison downsizing witnessed in many jurisdictions of the global north over the past decade by referring to the financial crisis of the late 2000s to early 2010s and its effects in terms of public spending cuts. Since this economic phase is essentially over, whereas the (moderate) decarceration turn is still ongoing, there are good reasons to challenge this hypothesis. This article delves into the non-economic forces that are fostering a prison population decline that, 10 years on, is becoming the new ‘penal normal’. The article thereby aims to spark a dialogue not only with the scholarship exploring the prison downsizing but also with certain theoretical frameworks that have played a key role in examining the punitive turn era. Additionally, the article contributes to the conversation on the need to reframe materialist readings on penality in a ‘non-reductionist’ fashion. By revisiting heterodox theses and scrutinizing the impact of recent penal changes on traditional materialist accounts, the article joins the collective endeavour seeking to update political economic perspectives on punishment and the penal field.

Social Policies and Center-Right Governments in Argentina and Chile

2017 ◽  
Vol 59 (03) ◽  
pp. 72-97 ◽  
Author(s):  
Sara Niedzwiecki ◽  
Jennifer Pribble
Keyword(s):  
Social Policy ◽  
Executive Branch ◽  
Welfare States ◽  
Cash Transfers ◽  
Policy Reforms ◽  
Left Turn ◽  
The Past ◽  
Poverty And Inequality ◽  
Left Party ◽  
Spending Cuts

AbstractLatin America's “left turn” expanded cash transfers and public services, contributing to lower poverty and inequality. Recently, right-leaning candidates and parties have begun to win back seats in the legislature, and in some cases have captured the executive branch. This shift has sparked debate about the future of Latin America's welfare states. This article analyzes social policy reforms enacted by two recent right-leaning governments: that of Sebastián Piñera in Chile (2010–14) and Mauricio Macri in Argentina (2015–). It finds that contrary to neoliberal adjustment policies of the past, neither Macri nor Piñera engaged in privatization or deep spending cuts. Instead, both administrations facilitated a process of policy drift in some sectors and marginal expansion in others. Policy legacies and the strength of the opposition help to explain these outcomes, suggesting that Latin America's political context has been transformed by the consolidation of democracy and the experience of left party rule.

scholarly journals Spending cuts threaten ambitions to host ITER

Nature ◽  
10.1038/42558 ◽  
1997 ◽  
Vol 387 (6634) ◽  
pp. 643-643
Author(s):  
Richard Nathan ◽  
Robert Triendl
Keyword(s):  
Spending Cuts

The new Zambian president faces long-term challenges

2021 ◽  
Keyword(s):  
National Development ◽  
Social Costs ◽  
Debt Restructuring ◽  
Content Type ◽  
Fiscal Constraints ◽  
Reform Programme ◽  
The Social ◽  
Voter Suppression ◽  
Spending Cuts

Significance Hichilema's surprise win came despite extensive voter suppression and intimidation attributed to former President Edgar Lungu and the ruling Patriotic Front (PF) against supporters of Hichilema’s United Party for National Development (UPND). Impacts The broad scope of Hichilema’s reform programme will pose difficulties of prioritisation, particularly within current fiscal constraints. Higher copper prices may mitigate some of the social costs associated with debt restructuring and spending cuts. The cancellation of a meeting between President Joe Biden and Hichilema over LGBT rights concerns may complicate relations with Washington.

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