scholarly journals Mistakes in the fiscal policy in Spain before the crisis

2013 ◽  
Vol 60 (5) ◽  
pp. 577-592 ◽  
Author(s):  
Jesús Ferreiro ◽  
Carmen Gómez ◽  
Felipe Serrano
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Economic Crisis ◽  
Public Expenditures ◽  
The Public ◽  
Made In

The paper analyses the mistakes made in the management of the fiscal policy in Spain before the crisis. The authors argue that the low size of the public expenditures, the adoption of a procyclical expansionary fiscal policy the years before the crisis, and the lack of a correct coordination between the Spanish fiscal policy and the ECB?s monetary policy, are key elements to understand the depth and length of the economic crisis and the current high fiscal imbalances in Spain.

scholarly journals THE NEW CONSENSUS UNDER STRESS: THE FINANCIAL CRISIS AND THE FISCAL POLICY COMEBACK

2020 ◽  
Vol 38 (75) ◽  
Author(s):  
Flávio Arantes ◽  
Antonio Carlos Macedo e Silva
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Economic Crisis ◽  
Public Debt ◽  
Window Of Opportunity ◽  
Paper Briefly ◽  
Economic Fundamentals ◽  
Stable Path ◽  
Policy Proposals

From the 1980s, mainstream macroeconomic thinking experienced a strongconvergence in methodological assumptions and policy proposals for more than twodecades. This “New Macroeconomics Consensus” was characterized by the role playedby the monetary policy in macroeconomic adjustment. Fiscal policy was set aside; itshould only be concerned with keeping public debt in a stable path in order to ensurethe “economic fundamentals”. However, the need for active and unconventionalpolicy measures during the 2008 global economic crisis brought fiscal policy back tothe mainstream debate. This paper briefly describes this convergence, discussing therole it assigned for fiscal policy before the crisis, and then examines the issues the postcrisis debate concentrated on, showing how it differs from the previous mainstreamconception of fiscal policy. We suggest that mainstream limitations to deal with fiscalpolicy may have opened a window of opportunity for a broader review of its role as apolicy tool.

Taxation and the Public Services

2017 ◽  
Author(s):  
John Kenneth Galbraith
Keyword(s):  
Monetary Policy ◽  
Interest Rates ◽  
Public Services ◽  
Macroeconomic Policy ◽  
The Other ◽  
Public Expenditures ◽  
The Public ◽  
The One ◽  
The Relationship

This chapter examines the role of taxation in the culture of contentment. In the age of contentment, macroeconomic policy has come to center not on tax policy but on monetary policy. Higher interest rates, it is hoped, will curb inflation without posing a threat to people of good fortune. Those with money to lend, the economically well-endowed rentier class, will thus be rewarded. The chapter first considers the role of monetary policy in the entirely plausible and powerfully adverse attitude toward taxation in the community of contentment before discussing the relationship between taxation and public services, and between taxation and public expenditures. It shows that public services and taxation have disparate effects on the Contented Electoral Majority on the one hand, and on the less affluent underclass on the other.

scholarly journals Evaluating Public Grants to Private Enterprise Where Information is Limited

1975 ◽  
Vol 3 (1) ◽  
pp. 45-55
Author(s):  
P. J. Kuch
Keyword(s):  
Public Investment ◽  
Allocative Efficiency ◽  
Social Benefits ◽  
Public Expenditures ◽  
Output Level ◽  
The Public ◽  
The Social ◽  
Grant Proposals ◽  
Public Grant ◽  
Made In

This paper sets out a framework for evaluating public grants to private firms, where recommendation as to the social desirability of individual grant proposals must be made in the absence of information about alternative public expenditures and the optimality of the proposed output level. It is argued that a surplus of social benefits over social costs, as they are conventionally defined, is not sufficient to justify publicly subsidized production of a good in the private sector. It must also be the case that the recipient firm's production of the good will generate net external benefits at least as large as the proposed grant. The magnitude of the public grant can not be ignored on the grounds that it is merely an income transfer. In the case of publicly subsidized private production, the mechanism of public investment is a transfer of resources. Proper evaluation of a grant involves determining the extent to which this transfer will improve allocative efficiency as opposed to merely redistributing income.

scholarly journals ACUMULACIÓN DE DEUDA PÚBLICA Y POLÍTICA FISCAL EN AMÉRICA LATINA

2020 ◽  
Vol 79 (314) ◽  
pp. 3
Author(s):  
Josué Zavaleta González
Keyword(s):  
Latin America ◽  
Fiscal Policy ◽  
Gross Domestic Product ◽  
Economic Crisis ◽  
Public Debt ◽  
Public Investment ◽  
The Public ◽  
Debt Accumulation ◽  
Fiscal Austerity ◽  
America Latina

<p>La acumulación de deuda pública es uno de los problemas que más ocupa la atención del gobierno de cualquier economía. En relación con esto, desde un enfoque ortodoxo, las medidas de austeridad fiscal son la única alternativa para evitar y contrarrestar un grave problema de endeudamiento público. No obstante, recientemente se ha demostrado que la capacidad de estas medidas para resolver este problema es limitada y que incluso podrían agravarlo. En este contexto, y como una respuesta a las dificultades económicas que impondrá la crisis económica mundial por Covid-19, en este artículo demostramos tanto de forma teórica como empírica que una política fiscal expansiva, enfocada en incrementar la inversión pública, tiene la capacidad de reducir, o al menos controlar, la acumulación de deuda pública como porcentaje del producto interno bruto (PIB).</p><p> </p><p align="center">PUBLIC DEBT ACCUMULATION AND FISCAL POLICY IN LATIN AMERICA</p><p align="center"><strong>ABSTRACT </strong></p>Public debt accumulation is one of the problems to which governments pay more attention. In this regard, from an orthodox approach, fiscal austerity measures are the unique alternative to avoid and counteract a serious problem of public debt accumulation. However, it has recently been shown that the capacity of these policies to respond to this problem is limited and even could aggravate it. In this context, and as a response to the economic difficulties resulted from the global economic crisis imposed by the Covid-19, the aim of this paper is to show theoretically and empirically that an expansive fiscal policy, focused on increasing public investment, could reduce, or at least control, the public debt accumulation as a percentage of Gross Domestic Product (GDP).

scholarly journals Fiscal Sustainability And Fiscal Reaction Functions In The US And UK

2012 ◽  
Vol 11 (8) ◽  
pp. 935 ◽  
Author(s):  
Philippe Burger
Keyword(s):  
Fiscal Policy ◽  
Economic Crisis ◽  
Public Debt ◽  
Fiscal Sustainability ◽  
Smooth Transition ◽  
The Public ◽  
Reaction Functions ◽  
The Us ◽  
The Future ◽  
The Uk

Following the 2008/9 financial and economic crisis, public debt/GDP ratios in several countries rose to their highest levels in 40 years. Also in the US and the UK did the public debt/GDP ratios increase significantly, thereby putting the spotlight again on fiscal sustainability. Based on past behaviour, this article asks whether fiscal policy in these two countries is likely to be sustainable. The article investigates how the US and UK governments, by changing their deficits, react to changes in their debt positions. To do this, the article estimates fiscal reaction functions using Smooth Transition Regressions. It finds that based on past behaviour, fiscal policy in both the US and UK can be expected to remain sustainable. Based on the same past behaviour, and assuming this behaviour will continue in the future, the article also calculates the levels to which the public debt/GDP ratios in the US and UK can be expected to converge.

scholarly journals ANALISIS PENGARUH KEBIJAKAN MONETER DAN KEBIJAKAN FISKAL REGIONAL TERHADAP STABILITAS HARGA DAN PERTUMBUHAN EKONOMI REGIONAL DI JAWA TIMUR (PERIODE 1995 - 2004)

2007 ◽  
Vol 9 (4) ◽  
pp. 55-100
Author(s):  
Priadi Asmanto ◽  
Soebagyo Soebagyo
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Economic Crisis ◽  
Fiscal Decentralization ◽  
Regional Growth ◽  
Price Stability ◽  
Fiscal Policies ◽  
Estimation Technique ◽  
Panel Estimation ◽  
C 23

This research analyzes the regional price stability in Indonesia, post the implementation of the UU No.23, 1999 and UU No.22, 1999. The first relates to the task of Bank Indonesia to stabilize the Rupiah, while the latter is about the fiscal decentralization from the center to the regional government.The panel estimation technique is utilized on the case of East Java data, covering 6 classified periods, namely before crisis, period of crisis, prior decentralization and the period after decentralization. The result shows several findings, first, the fiscal decentralization and economic crisis have influence the price stability and economics growth significantly. Second, the join monetary and fiscal policies, has a significant impact on the regional growth and the price stability. Furthermore, this study shows a higher impact of the monetary policy than the fiscal policy.Keywords: Monetary policy, regional, fiscal policy, panel, , decentralization, East Java.JEL Classification: C 23, E31, H30, R50.

scholarly journals The Effectiveness of Indicators of Financial Discipline in Strengthening the Exchange Rate, with a Special Reference to Iraq

2021 ◽  
Vol 27 (130) ◽  
pp. 118-141
Author(s):  
Karrar Mahdi Fenjan ◽  
Muhammad Saleh Salman
Keyword(s):  
Exchange Rate ◽  
Fiscal Policy ◽  
Central Bank ◽  
Foreign Currency ◽  
Public Expenditures ◽  
Public Budget ◽  
Negative Effects ◽  
The Public ◽  
The Exchange Rate ◽  
The Government

Controlling public expenditures is one of the main objectives of the public budget. The public budget often suffers from a deficit, whether in developed or developing countries, because expenditures are usually greater than the revenues generated. This requires the existence of financial rules that are adhered to by the government, which in turn leads to discipline. Fiscal policy leads to a reduction in the obligations incumbent on the government.  Adhering to the financial rules would correct the course of fiscal policy in Iraq, with the need to direct oil revenues in the years of financial abundance when global oil prices rise to sovereign funds similar to other rentier countries, which contributes to maintaining the stability of the exchange rate and reducing dependence on The Central Bank. It performs monetary sterilization operations to sterilize the negative effects resulting from the lack of fiscal policy discipline, which negatively affects the foreign currency reserves and depletes them. The main conclusion reached by the research is that there is a state of financial indiscipline that has negatively affected the Iraqi dinar exchange rate, and that the attempts of the Central Bank of Iraq have partially worked to reduce the negative effects of the expansionary financial policy, and the main recommendation of the research was to work to achieve more discipline in fiscal policy in order to reduce the state of economic instability and mitigate the monetary sterilization policy by The Central Bank and the accompanying depletion of hard currency

Strategy and Tactics of Monetary Policy during the World Economic Crisis

2010 ◽  
pp. 4-20 ◽  
Author(s):  
A. Nekipelov ◽  
M. Golovnin
Keyword(s):  
Monetary Policy ◽  
Economic Crisis ◽  
Exchange Rate Policy ◽  
Industrial Countries ◽  
Policy Goals ◽  
The World ◽  
Rate Policy ◽  
World Economic ◽  
World Economic Crisis ◽  
Qualitative Changes

The paper analyzes the qualitative changes in monetary policy goals and instruments during the world economic crisis of 2007-2009 in industrial countries and Russia; it represents the authors view on Russian monetary policy goals and results on different stages of crisis development. On the basis of the analysis the authors conclude on the necessity of active exchange rate policy in Russia, while developing interest rate instruments, and implementation of some exchange restrictions to prevent crisis contagion in the future.

Global Financial Crisis and Its Impact on Russia

2009 ◽  
pp. 9-27 ◽  
Author(s):  
A. Kudrin
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Crisis ◽  
Central Bank ◽  
Global Financial Crisis ◽  
Developed Countries ◽  
Real Economy ◽  
Energy Prices ◽  
Russian Government ◽  
The Real

The article examines the causes of origin and manifestation of the current global financial crisis and the policies adopted in developed countries in 2007—2008 to deal with it. It considers the effects of the financial crisis on Russia’s economy and monetary policy of the Central Bank in the current conditions as well as the main guidelines for the fiscal policy under different energy prices. The measures for fighting the crisis that the Russian government and the Central Bank use to support the real economy are described.

Sign in / Sign up

Export Citation Format

Share Document