scholarly journals The Impact of the Monetary-fiscal Policy Mix and Financialisation on Fixed Asset Investment in the EU in 1999–2014

2016 ◽  
pp. 79-96
Author(s):  
Anna Malinowska
Keyword(s):  
Fiscal Policy ◽  
Policy Mix ◽  
Fixed Asset ◽  
The Impact ◽  
The Eu ◽  
Fixed Asset Investment

scholarly journals The impact of COVID-19 on households´ income in the EU

2021 ◽  
Author(s):  
Vanda Almeida ◽  
Salvador Barrios ◽  
Michael Christl ◽  
Silvia De Poli ◽  
Alberto Tumino ◽  
...  
Keyword(s):  
Fiscal Policy ◽  
Disposable Income ◽  
Income Loss ◽  
Eu Member States ◽  
Policy Interventions ◽  
Discretionary Fiscal Policy ◽  
Policy Measures ◽  
The One ◽  
The Impact ◽  
The Eu

AbstractThis analysis makes use of economic forecasts for 2020 issued by the European Commission in Autumn 2019 and Spring 2020, and of a counterfactual under a no-policy change assumption, to analyse the impact of the COVID-19 crisis on EU households´ income. Additionally, our analysis assesses the cushioning effect of discretionary fiscal policy measures taken by the EU Member States. We find that the COVID-19 pandemic is likely to affect significantly households’ disposable income in the EU, with lower income households being more severely hit. However, our results show that due to policy intervention, the impact of the crisis is expected to be similar to the one experienced during the 2008–2009 financial crisis. In detail, our results indicate that discretionary fiscal policy measures will play a significant cushioning role, reducing the size of the income loss (from −9.3% to −4.3% for the average equivalised disposable income), its regressivity and mitigating the poverty impact of the pandemic. We conclude that policy interventions are therefore instrumental in cushioning against the impact of the crisis on inequality and poverty.

scholarly journals THE IMPACT OF THE MONETARY - FISCAL POLICY MIX ON INVESTMENTS OF EURO AREA COUNTRIES IN THE CONTEXT OF THE FINANCIAL CRISIS

2012 ◽  
Vol 8 (1) ◽  
pp. 228-236
Author(s):  
Joanna Stawska
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Interest Rates ◽  
Euro Area ◽  
Debt Crisis ◽  
Policy Mix ◽  
Monetary Authorities ◽  
Recent Financial Crisis ◽  
The Impact

The study presents the impact of monetary-fiscal policy mix on economic growth, mainly for the investments of euro area in financial crisis. Fiscal policy and monetary policy play an important role in the economy, influencing each other and on a number of economic variables as well. In the face of the recent financial crisis, which turned into a debt crisis, fiscal and monetary authorities have been working together to revive economic activity. There was a significant economic impact on the level of government investments. The central bank kept interest rates at very low levels and used nonstandard instruments of monetary policy. Fiscal authorities have increased government spending to stimulate investment and economic recovery. The paper concludes that the management of the fiscal and monetary authorities in a crisis situation has been modified compared to the period before the crisis, when the coordination of these policies was clearly weaker.

scholarly journals The Disassembly of the Greek Welfare State under the Troika

2021 ◽  
Vol 7 (2) ◽  
pp. 211-232
Author(s):  
Yianni Tsesmelis
Keyword(s):  
Fiscal Policy ◽  
Political Parties ◽  
Welfare State ◽  
High Water ◽  
Greek Population ◽  
Individual Member ◽  
Political Interaction ◽  
The Impact ◽  
The Eu ◽  
The Welfare State

Having broken from half a century of binary political choice between Greece's two established political parties, SYRIZA's rise to power in the 2010s represented an opportunity for the country's welfare state to resist intrusions by European entities and institutions. This paper analyses Greece’s history and political interaction during this period, arguing that Greece has now, in folding to the EU, completed its transition from a relatively liberally-spending welfare state to what Wolfgang Streeck calls a “consolidation state.” Relevant to this analysis is a set of historical details leading up to the SYRIZA election and the 2015 referendum—seen as the high-water mark of opposition to austerity and cuts to the welfare state. In turn, the impact of austerity on the Greek population is quantified and substantiated, demonstrating that austerity measures predominately impacted the welfare state, more often than not resulting in direct reductions to pension and other monetary payments to the citizenry. Finally, these factual conditions are squared with theoretical descriptions and conceptualisations of the welfare state as existing under neoliberalism. Ultimately, what can be drawn from this research is that Europe's institutions are unyielding in their prioritisation of an ordoliberal, single-market ideology over individual Member States’ varying conceptions of locally implemented fiscal policy. Keywords: Austerity; Consolidation state; Neoliberalism; Ordoliberalism; Referendum; Welfare state; SYRIZA

Free Competition and Fiscal Policy in European Union

2021 ◽  
Vol 6 (6) ◽  
pp. 25-30
Author(s):  
Maria do Rosário Anjos
Keyword(s):  
European Union ◽  
Fiscal Policy ◽  
Social Cohesion ◽  
The Political ◽  
Eu Countries ◽  
Free Competition ◽  
Tax Harmonization ◽  
Deductive Method ◽  
The Impact ◽  
The Eu

Fiscal policy and the harmonization of tax laws are extremely important in order to prevent distortions of free competition in UE. The process of European Union construction is based on integration and liberalization of markets in order a loyal and free competition. This issue is really important in order to crisis superaction. In this context the fiscal policy has a very significant impact on countries economics in EU and on company’s management, especially for those most exposed to globalization. The impact of taxes on free competition, economic growth and employment is quite evident since the EU foundation. So, it would be expected a more significant progress towards fiscal harmonization among EU countries. However, until now the question of tax harmonization had no results. It remains a sensitive question in EU. Almost two decades after the entry of the Euro, after a deep economic crisis that endangered the European project, face to BREXIT, we raised some questions as base to this work: what are the political and institutional limitations to tax harmonization in EU? Why there are no further progress was made in the field of tax harmonization, at least, in company’s income? How does this affect social cohesion? What are the effects on economic and social cohesion? This study intends to reflect on the political and institutional constraints of the tax harmonization, quite necessary to the effective process of economic and social integration within the EU. As methodology, we will use a comparative study about income taxes in several EU countries and the relation to GDP, as well the deductive method to analyze the results we find and some reference studies on the subject. In conclusion, we will present the analyze the results and try to answer to these questions. With this study we pretend give a contribution in order to find an answer to the investigation questions.

scholarly journals Whether Fiscal Stance or Monetary Policy is Effective for Economic Growth in Case of South Asian Countries?

2008 ◽  
Vol 47 (4II) ◽  
pp. 791-799 ◽  
Author(s):  
Shahid Ali ◽  
Somia Irum ◽  
Asghar Ali
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Asian Countries ◽  
Policy Mix ◽  
Monetary Policies ◽  
Tax Rate ◽  
The Government ◽  
The Impact ◽  
Fiscal And Monetary Policy

Monetary policy and fiscal policy are sister strategies that can be used alone and in combination to direct the economic goals. In the literature relative efficacy of fiscal and monetary policy has been studied extensively. Friedman and Meiselman (1963), Ansari (1996), Reynolds (2000, 2001), Chari, et al. (1991, 1998), Schmitt and Uribe (2001a), Shapiro and Watson (1988), Blanchard and Perroti (1996), Christiano, et al. (1996), Chari and Kehoe (1998), Kim (1997), Chowdhury (1986, 1988), Chowdhury, et al. (1986), Weeks (1999), Feldstein (2002) and Cardia (1991) have examined the impact of fiscal and monetary policies on various economic aggregates. However, the bulk of theoretical and empirical research has not reached on conclusion concerning the relative power of fiscal and monetary policy to effect economic growth. Some researchers find support for the monetarist view, which suggests that monetary policy generally has a greater impact on economic growth and dominates fiscal policy in terms of its impact on investment and growth. [Friedman and Meiselman (1963); Ajaye (1974); Elliot (1975); Batten and Hafer (1983)], while other argued that fiscal stimulates are crucial for economic growth. [Chowdhury (1986); Olaloye and Ikhide (1995)], On the other hand, according to Cardia (1991) macroeconomic activities are largely explained by some other variables. The experiment of 1970s clearly demonstrates that a policy mix produced only stagflation. Some economist took keen interest in money by combining Keynesian neoclassical mixture which is called the “funnel” theory by James Tobin. The argument was that tax rate and money growth simultaneously leads to stagflation thus the Government could choose either fiscal or monetary policy stimulus which will enhance growth. [Reynolds (2001)].

scholarly journals Dependencies between Variables from the Area of the Monetary and Fiscal Policy in the European Union Countries

2021 ◽  
Vol 24 (1) ◽  
pp. 7-25
Author(s):  
Joanna Stawska
Keyword(s):  
Fiscal Policy ◽  
Financial Crisis ◽  
Research Methods ◽  
Policy Coordination ◽  
Economic Conditions ◽  
Statistical Research ◽  
Eu Countries ◽  
Monetary And Fiscal Policy ◽  
The Impact ◽  
The Eu

Research background: The core of coordinating a monetary and fiscal policy (policy mix) is based on combining both policies to achieve goals related to price stability, as well as economic growth and employment. In turn, the decisions of economic authorities in the monetary-fiscal game have a significant impact on economic variables in the economy. In the economic literature, the importance of monetary and fiscal policy coordination is emphasized as it has a positive effect on the stability of the economy. Purpose of the article: The aim of the article is to identify the dependencies between variables in the scope of fiscal policy and monetary policy under existing economic conditions and then assess their impact on the economy in the EU countries. Methods: To achieve this objective, the following research methods were used: a review of the scientific literature, a presentation of statistical data, and statistical research methods. Findings & Value added: The rationale for adopting such issues is to examine the impact of the financial crisis on the decisions of central banks and governments in the EU. The financial crisis has affected a change in the approach to conducting monetary and fiscal policy. The changing economic conditions forced economic authorities to take many decisions that affected the interaction between the central bank and the governments in the EU Member States. In many EU countries in the discussed period, there were significant interdependencies between variables in both monetary and fiscal policy.

China's economic success: evidence regarding the role of fiscal policy

2019 ◽  
Vol 7 (1) ◽  
pp. 108-130 ◽  
Author(s):  
Xiao Kong ◽  
Feng Feng
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Empirical Support ◽  
Great Success ◽  
Economic Success ◽  
Fixed Asset ◽  
Keynesian Economics ◽  
New Findings ◽  
Cross Correlation Analysis ◽  
Fixed Asset Investment

The Chinese economy has achieved great success in both stability and sustained growth since the market economy was established. This paper seeks to explain that success by evaluating China's fiscal policy. It starts by testing two hypotheses derived from Keynesian economics. First, it seeks to determine whether China's economic regulations act against the business cycle. Second, it aims to understand whether China stimulates economic growth through a deficit policy and strong government fixed-asset investment. Based on a Hodrick–Prescott filter technique combined with cross-correlation analysis and a Granger causality test, we suggest that fiscal policy in China is generally counter-cyclical and achieves its desired effects. Further analyses using a co-integration model and the impulse response function confirm that government fixed-asset investment enhances China's economic growth. These empirical findings indicate that China's fiscal policy matches the basic policy orientation of Keynesian economics and is closely associated with its economic success. We also identify some new findings that contradict Keynesian claims: China's economic growth responds positively to taxation, which we attribute to taxation's function in promoting appropriate resource allocation. We believe our study provides empirical support vindicating China's fiscal policy.

High-speed railways and local economic performance: evidence from China’s prefecture-level cities

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Chao Li ◽  
Zhao Zhao ◽  
Han Li
Keyword(s):  
Economic Performance ◽  
High Speed ◽  
Causal Effect ◽  
Mechanism Analysis ◽  
Fixed Asset ◽  
Content Type ◽  
Service Sectors ◽  
Time Variations ◽  
The Impact ◽  
Fixed Asset Investment

Purpose The purpose of this paper is to identify the causal effect of high-speed railways (HSRs) and investigate the affecting channels; the second purpose is to examine how HSRs change the distribution of economic activity across cities and sectors. Design/methodology/approach A difference-in-difference strategy is implemented to estimate the impact of recently built HSRs on local economic performance in China, exploiting the geography and time variations in HSR operations. Findings Using panel data from China’s City Statistical Yearbook 2001–2019, the authors find that HSRs lead to a significant increase in cities’ gross domestic product (GDP) and GDP per capita, but the authors do not find any significant change in GDP growth. This conclusion still holds true after the authors address the endogeneity problems. A mechanism analysis shows that HSRs improve local economic performance mainly by increasing fixed asset investment. The authors also find that the HSR investment is a policy that favors metropolitan areas due to the larger increase in the GDP for larger cities and with HSRs, the industrial and service sectors will further agglomerate in larger cities. Originality/value The authors contribute to the literature in several ways. First, this paper improves the estimation strategy in identifying the HSR impact on the local economic performance. Second, this paper investigates the affecting channels of HSRs. This paper proves that HSRs in China promote the cities’ economic performance mainly by increasing the fixed asset investment. Third, this study provides evidence for the new economic geography models pioneered by Krugman (1991).

Free Competition and Fiscal Policy in European Union

2020 ◽  
Vol 1 (1) ◽  
pp. 49-56
Author(s):  
Maria do Rosário Anjos
Keyword(s):  
European Union ◽  
Fiscal Policy ◽  
Social Cohesion ◽  
The Political ◽  
Eu Countries ◽  
Free Competition ◽  
Tax Harmonization ◽  
Deductive Method ◽  
The Impact ◽  
The Eu

Fiscal policy and the harmonization of tax laws are extremely important in order to prevent distortions of free competition in UE. The process of European Union construction is based on integration and liberalization of markets in order a loyal and free competition. This issue is really important in order to crisis superaction. In this context the fiscal policy has a very significant impact on countries economics in EU and on company’s management, especially for those most exposed to globalization. The impact of taxes on free competition, economic growth and employment is quite evident since the EU foundation. So, it would be expected a more significant progress towards fiscal harmonization among EU countries. However, until now the question of tax harmonization had no results. It remains a sensitive question in EU. Almost two decades after the entry of the Euro, after a deep economic crisis that endangered the European project, face to BREXIT, we raised some questions as base to this work: what are the political and institutional limitations to tax harmonization in EU? Why there are no further progress was made in the field of tax harmonization, at least, in company’s income? How does this affect social cohesion? What are the effects on economic and social cohesion? This study intends to reflect on the political and institutional constraints of the tax harmonization, quite necessary to the effective process of economic and social integration within the EU. As methodology, we will use a comparative study about income taxes in several EU countries and the relation to GDP, as well the deductive method to analyze the results we find and some reference studies on the subject. In conclusion, we will present the analyze the results and try to answer to these questions. With this study we pretend give a contribution in order to find an answer to the investigation questions.

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