scholarly journals Fiscal Rules: Anchors of Stability

2021 ◽  
Vol 0 (0) ◽  
Author(s):  
Niklas Potrafke ◽  
Christoph A. Schaltegger
Keyword(s):  
Economic Growth ◽  
Fiscal Rules ◽  
Fiscal Deficits ◽  
Fiscal Manipulation

Abstract We believe that fiscal rules help to consolidate budgets in the post-Corona period. Fiscal rules reduce fiscal deficits and debt-to-GDP ratios, promote economic growth, mitigate room for fiscal manipulation and encourage politicians to prioritize individual policies.

Analysis of tax-spend nexus for Russian regional budgets

2020 ◽  
pp. 5-29
Author(s):  
Evsey T. Gurvich ◽  
Natalia A. Krasnopeeva
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Causal Relationship ◽  
National Economy ◽  
Federal Budget ◽  
Fiscal Rules ◽  
Fiscal Discipline ◽  
Federal Level ◽  
Regional Budgets ◽  
Econometric Technique

We study the tax-spend nexus for Russian regional budgets. Causal relationship running from taxing to spending is found, thus supporting the concept “tax and spend” suggested by M. Friedman. Next, elasticity of expenditure by revenue is estimated for a panel of 80 regional budgets basing on data for 2000—2017. Estimates are in the range of 0.72 to 0.78 (depending on the econometric technique), which exceeds elasticity for the federal budget more than twice. This evidences that fiscal policy at the sub-federal (as distinct from the federal) level has clear pro-cyclical nature. Besides, the largest sensitivity of expenditure to revenue shocks is found for the item “national economy”, implying marked adverse implications for economic growth. We suggest to mitigate this effect by modifying fiscal rules for sub-federal budgets. They are currently aimed primarily at enhancing fiscal discipline, with less emphasis on countercyclical policy, insulating economy from fiscal shocks.

What Determines Fiscal Deficits in Europe? The Impact and Interaction of EMU Membership, Fiscal Rules, Fiscal Councils and Creative Accounting

2020 ◽  
Vol 71 (1) ◽  
pp. 15-41
Author(s):  
Dominik Maltritz ◽  
Sebastian Wüste
Keyword(s):  
Fiscal Rules ◽  
Special Focus ◽  
Annual Data ◽  
Budget Balance ◽  
Fiscal Deficits ◽  
Eu Countries ◽  
Creative Accounting ◽  
Stock Flow ◽  
The Impact

AbstractWe search for drivers of fiscal deficits in Europe using a data panel containing annual data of 27 EU countries in the years 1991–2012. Our special focus is on the influence of fiscal rules as well as on fiscal councils, i. e. institutions that may help to reduce deficits and enforce fiscal rules by advising governments. We distinguish between internal fiscal rules and external rules that result from EMU membership. In addition, we consider the impact of “creative accounting”, i. e. measures that help to circumvent fiscal rules, which we approximate by so called stock-flow-adjustments. We especially analyze the interactive influence of the mentioned variables on the budget balance.

EUROPEAN FISCAL RULES AS A LIABILITY IN THE TRANSATLANTIC TRADE CONFLICT: LESSONS FROM NiGEM SIMULATIONS

2020 ◽  
Vol 254 ◽  
pp. R54-R66 ◽  
Author(s):  
Sebastian Dullien ◽  
Sabine Stephan ◽  
Thomas Theobald
Keyword(s):  
Economic Growth ◽  
European Union ◽  
Fiscal Policy ◽  
Fiscal Rules ◽  
The European Union ◽  
Negative Effects ◽  
Transatlantic Trade ◽  
The Us ◽  
Trump Administration

Under the Trump administration, a transatlantic trade conflict has been escalating step by step. First, it was about tariffs on steel and aluminium, then about retaliation for the French digital tax, which is suspended until the end of the year. Most recently, the US administration threatened the European Union with tariffs on cars and car parts because of Canadian seafood being subject to lower import duties. As simulations with NiGEM show, a further escalation of the transatlantic trade conflict has the potential to slow down economic growth significantly in the countries involved. This is a considerable risk given the fact that the countries have to cope with the enormous negative effects of the pandemic shock. Furthermore, the damage caused by the trade conflict depends on the extent to which the affected countries use fiscal policy to stabilise their economies.

Democracy and Macroeconomic Performance in Underdeveloped Countries

2000 ◽  
Vol 33 (3) ◽  
pp. 319-349 ◽  
Author(s):  
MARK J. GASIOROWSKI
Keyword(s):  
Economic Growth ◽  
Regression Analysis ◽  
Fixed Effects ◽  
Annual Data ◽  
Macroeconomic Performance ◽  
Fiscal Deficits ◽  
Underdeveloped Countries ◽  
Democratic Regimes ◽  
Democratic Performance ◽  
Fixed Effects Regression

In this study, the author examines how inflation and economic growth differ in more- and less-democratic regimes and in new and mature democracies. The analysis is based on a panel research design featuring annual data from a large sample of underdeveloped countries and two-way, fixed-effects regression analysis. The author's central finding is that more-democratic countries have higher inflation and slower growth than less-democratic countries. Inflation apparently is higher than more-democratic countries mainly because they have higher fiscal deficits and faster wage growth; this higher inflation marginally reduces economic growth in these countries. The author also finds that new and mature democracies do not have significantly different inflation and growth rates. The findings suggest that unrestrained political participation and the resulting demands placed on state officials undermine democratic performance.

UNIQUELY SINGAPORE'S BUDGETARY SYSTEM AND SOCIAL PROTECTION FINANCING SCHEMES

2014 ◽  
Vol 59 (03) ◽  
pp. 1450024 ◽  
Author(s):  
NGEE CHOON CHIA
Keyword(s):  
Economic Growth ◽  
Economic History ◽  
Social Protection ◽  
Fiscal Sustainability ◽  
Fiscal Rules ◽  
Budgetary Process ◽  
Demographic Dividend ◽  
Welfare Programs ◽  
Fiscal Discipline ◽  
Financing Schemes

This paper examines Singapore's fiscal position and its unique way of financing targeted welfare programs. We examine how reserves are accumulated through fiscal discipline during times of phenomenal economic growth in Singapore and when Singapore was enjoying demographic dividend. The existence of the large accumulated reserves has resulted in particular features of the Singapore's budgetary process, such as fiscal rules, which govern the utilization of revenues from the reserves. Innovative budget implementation, such as Block Budgeting, has helped Singapore to ensure fiscal sustainability. The accumulation of reserves throughout its economic history has afforded Singapore a unique way to fund social protection through special transfers and funds, without having to raise taxes.

THE PHILIPPINES IN 2003: Troubles, None of Them New

Asian Survey ◽  
2004 ◽  
Vol 44 (1) ◽  
pp. 93-101 ◽  
Author(s):  
Michael J. Montesano
Keyword(s):  
Economic Growth ◽  
The Philippines ◽  
Balance Of Payments ◽  
Foreign Affairs ◽  
Fiscal Deficits

Abstract President Gloria Macapagal Arroyo announced her decision to run for reelection in 2004. The Philippines suffered a failed coup, divisive politics, and Communist and separatist insurgencies. Economic growth was sluggish, with large fiscal deficits and a deteriorating balance of payments. In foreign affairs, Manila continued its rapprochement with Washington.

scholarly journals Oil revenues, External debt, and Growth in Nigeria

2017 ◽  
Author(s):  
Ibrahim Mohammed Adamu
Keyword(s):  
Economic Growth ◽  
Population Growth ◽  
Public Investment ◽  
External Debt ◽  
Fiscal Deficits ◽  
Capital Projects ◽  
Distributed Lag ◽  
Autoregressive Distributed Lag ◽  
Foreign Loans ◽  
Oil Revenues

Oil revenues and external debt might have stimulated economic growth in the oil exporting countries via investment in capital projects. The paper estimated economic growth on oil revenues and external debt after controlling public investment and population growth over the period 1970-2015. Following the confirmation of the order of integration, our analysis is based on autoregressive distributed lag bound testing to cointegration approach. The key findings are that oil revenues and public investment contributes to Nigeria’s economic growth. However, our findings also indicate that external debt and population growth retards growth. The study suggests that minimizing fiscal deficits and unnecessarily foreign loans by creating tax avenues through the development of the non-oil sectors would reduce the dependency syndrome on a single commodity (oil) in Nigeria.  

scholarly journals Economic Zones as Key Players in Economic Advancement: the Bangladesh Perspective

2019 ◽  
Vol 27 (1) ◽  
Author(s):  
Mustafizur Rahman ◽  
Muhammad Abu Yusuf
Keyword(s):  
Economic Growth ◽  
World Bank ◽  
Fiscal Rules ◽  
The World Bank ◽  
The World ◽  
Role Players ◽  
One Stop ◽  
Skilled Workforce ◽  
Economic Zones ◽  
Double Digit

Bangladesh is one of the top five growing economies in the world, according to the World Bank. The country is now at a critical economic juncture with many challenges ahead. The double-digit growth rate of Gross Domestic Product, a massive influx of investment and a highly skilled workforce is the key bases to secure ‘Vision 2041’. This study shows how the Economic Zones are contributing to foster economic development in Bangladesh. The background study of the Economic Zones showed that the ‘Bangladesh Economic Zones Authority Act, 2010’ was enacted to make each zone an engine for economic growth. Describing the challenges, the study shows the key dynamic aspects of Economic Zones and the rationale behind why investors and other people are marking them as key role players in the economic advancements of Bangladesh. Economic Zones are contributing to attracting Foreign Direct Investment, local investment and employment to promote the economic growth of the country. The priorities of the investors were sorted out, and some gaps were also detected. Upgrading online servicing in fostering ‘One Stop Service’ and revisiting fiscal rules are the suggestions more from this study.

scholarly journals The Synchronization of Financial and Business Cycles in Saudi Arabia

2018 ◽  
Vol 5 (4) ◽  
pp. 32 ◽  
Author(s):  
Osama El-Baz
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Fiscal Policy ◽  
Business Cycles ◽  
Early Warning Systems ◽  
Fiscal Rules ◽  
Economic Stability ◽  
Systemic Risks ◽  
Financial Credit ◽  
Financial Cycles

Financial cycles have become vividly tracked and analyzed by regulatory authorities to avoid the buildup of excessive systemic risks in the financial system that could hamper economic growth. However, fiscal policy usually pays an exclusive attention to business cycles; which might leave fiscal outcomes vulnerable to financial sector dynamics. We investigated financial and business cycles in Saudi Arabia over the period (1970Q1- 2016Q4). The results of the BBQ cycle dating algorithm revealed that the duration of financial upturns (downturns) are longer than that for economic expansions (contractions) in means, also both the amplitude and the slope for upturns (downturns) are higher than those for expansions (contractions) in means. Moreover, financial cycle episodes are more frequent than business cycle episodes. Finally, we found empirical evidence that financial (credit) conditions are crucial for economic stability. Fiscal policy can play an important role in fostering economic growth going forward through the implementation of a countercyclical policy that allows for the accumulation of fiscal buffers and releasing them during periods of an economic slowdown, the setup of early warning systems for business and financial cycles, and the introduction of fiscal rules to limit the scope for a procyclical fiscal stance.

scholarly journals Romania

2019 ◽  
Vol 19 (278) ◽  
Author(s):  
Keyword(s):  
Economic Growth ◽  
Current Account ◽  
Investor Sentiment ◽  
Domestic Policy ◽  
Medium Term ◽  
Fiscal Deficits ◽  
Fiscal Stimulus ◽  
Eu Countries ◽  
Macroeconomic Imbalances ◽  
The Current Account

Economic growth has remained strong, raising people’s incomes towards those in advanced EU countries. However, macroeconomic imbalances have become increasingly evident: the current account and fiscal deficits have been widening and inflation pressures are building. Economic growth is expected to stay above potential in 2019 on the back of continued fiscal stimulus, but slow down over the medium term due to faltering investment and reforms. The growing imbalances are eroding policy room for maneuver and increasing the risk that the convergence with EU could suffer a setback, triggered by domestic policy excesses or swings in global investor sentiment.

Sign in / Sign up

Export Citation Format

Share Document