Fiskalpolitik in Zeiten der Pandemie: Staatsschulden als Kernelement einer sinnvollen staatlichen Risiko- bzw. Krisenpolitik

2021 ◽  
Vol 70 (10-11) ◽  
pp. 629-650
Author(s):  
Holger Sandte ◽  
Adalbert Winkler
Keyword(s):  
Fiscal Policy ◽  
Balance Sheet ◽  
Government Debt ◽  
Future Generations ◽  
Fiscal Policies ◽  
National Debt ◽  
Core Element ◽  
Distributional Conflict ◽  
Government Deficits

Zusammenfassung Die als Folge der Corona-Pandemie steigende Staatsverschuldung wird zunehmend kritisch gesehen, weil sie angeblich zukünftige Generationen mit Schulden belaste. Saldenmechanische Zusammenhänge zeigen, dass dies nicht richtig ist: zukünftige Generationen erben einen Verteilungskonflikt zwischen zukünftigen Steuerzahlern und zukünftigen Haltern der Staatsschuldtitel, aber keine Netto-Schulden. Da eine Reihe von Überlegungen dafür spricht, dass die Staatsverschuldung selbst dazu beiträgt, die Angebotsseite der Volkswirtschaft zu stärken, ist zu erwarten, dass zukünftige Generationen diesen Verteilungskonflikt lösen werden, ohne auf Staatskonkurs oder (Hyper-)Inflation zurückzugreifen. Insgesamt ist die Ausweitung der Staatsverschuldung daher ein wichtiges Element einer angemessenen Risiko- und Krisenpolitik in der Pandemie. Abstract: Fiscal Policy in Times of Pandemic: National Debt as a Core Element of a Sensible Government Risk and Crisis Policy The COVID-19 pandemic has led to a strong rise in government deficits. Critics argue that the policy approach burdens future generations with debt. However, simple balance sheet mechanics show that this is not the case. Future generations inherit a distributional conflict on future resources between future taxpayers and future holders of claims on governments, but no net debt. Moreover, several arguments suggest that expansionary fiscal policies support investment and hence raise the stock of real capital future generations can make use of. Overall, we conclude that the expansion of government debt has been the correct policy approach for dealing with the pandemic.

scholarly journals Changes in the fiscal policy of EU states after the 2008 crisis

2019 ◽  
Vol 55 (1) ◽  
pp. 52-65 ◽  
Author(s):  
Witold Wiliński
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
European Parliament ◽  
Steady Increase ◽  
Fiscal Policies ◽  
National Debt ◽  
Eu Countries ◽  
Fiscal Compact ◽  
The Eu ◽  
Debt Levels

Abstract The aim of this article is an extensive presentation of the fiscal policy conducted by the EU states in the years 2008–2015. The analysis concerns the legal regulations introduced at the EU level by the European Parliament and the Council, as well as the fiscal policies of governments of particular states. The first part of the article analyzes basic macroeconomic data in EU states concerning the level of debt, the level of gross domestic product (GDP) redistribution, and the level of economic growth in the analyzed period. The second part discusses the legal acts adopted by the European Parliament and the Council (the so-called ‘sixpack’ and the European Fiscal Compact), aimed at improving macroeconomic balance and ensuring supervision over the proper functioning of national finances. The third part analyzes the discretionary fiscal policies pursued in EU states. The main conclusions of this article are as follows: (i) EU countries recorded higher national debt levels and debt growth rates between 2008 and 2015 than most non-EU Organisation for Economic Co-operation and Development (OECD) countries; (ii) despite legal measures taken by the European Council and the European Commission in the form of the sixpack and the European Fiscal Compact, and despite discretionary fiscal measures such as in the form of the European Economic Recovery Plan, five EU countries (Cyprus, Greece, Italy, Portugal, and Spain) have experienced a steady increase in their national debt levels; and (iii) deep reforms in the composition and level of government expenditure are a prerequisite for reducing national debt levels and for achieving satisfactory economic growth in these countries.

Evaluation of Fiscal Policy Effect of China’s Photovoltaic Industry

2018 ◽  
pp. 111-116 ◽  
Author(s):  
Gang AN ◽  
Hang WANG
Keyword(s):  
Fiscal Policy ◽  
Research And Development ◽  
Operating Performance ◽  
Fiscal Policies ◽  
Micro Data ◽  
Policy Effect ◽  
Policy Suggestions ◽  
Asset Size ◽  
The Empirical Analysis

To explore the role of fiscal policies in promoting the development of photovoltaic industry, the effects of financial subsidies on the development of China’s photovoltaic industry were analyzed by using the micro data of listed companies. The empirical analysis results in this study indicate that the fiscal policies represented by financial subsidies play a remarkable positive impetus function and financial subsidies are positively correlated with the operating performance of Photovoltaic enterprises. With larger the asset size and higher the Research and Development (R&D) investments, the operating performance of Photovoltaic enterprises is the better. Based on the above results, this study puts forward some policy suggestions on optimizing fiscal policy tools and further promoting the development of photovoltaic industry.

scholarly journals Budget Deficits: Rhetoric and Reality

1989 ◽  
Vol 3 (2) ◽  
pp. 73-93 ◽  
Author(s):  
Robert Eisner
Keyword(s):  
Fiscal Policy ◽  
Public Goods ◽  
News Media ◽  
Empirical Data ◽  
Budget Deficit ◽  
Economic Problem ◽  
Budget Deficits ◽  
Relevant Model ◽  
Government Deficits ◽  
Economics Profession

Whatever the real or imagined ills of the economy, the news media, most politicians and a fair proportion of the economics profession are quick to point to the culprit: “the budget deficit.” No matter that few appear to know or care precisely what deficit they are talking about or how it is measured. No matter that few bother to explain in terms of a relevant model just how government deficits may be expected to impact the economy. No matter that few offer any empirical data to sustain their judgments. I believe there are serious problems with our fiscal policy. These relate to fundamental national priorities and the provision of public goods, now and for the future. But the current size of the federal deficit is not “our number one economic problem,” if indeed it is a problem at all.

scholarly journals Relative Effectiveness of Monetary and Fiscal Policies on Output Stabilization in Developing Countries: Evidence from Rwanda

2017 ◽  
Vol 10 (1) ◽  
pp. 220
Author(s):  
Kabanda Richard ◽  
Peter W. Muriu ◽  
Benjamin Maturu
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Relative Effectiveness ◽  
Variance Decomposition ◽  
Var Model ◽  
Fiscal Policies ◽  
Impulse Responses ◽  
Exogenous Variables ◽  
Output Stabilization ◽  
The Government

The aim of this study was to explain the relative effectiveness of monetary and fiscal policies in explaining output in Rwanda. The study used a sample of quarterly data for the period 1996-2014. Applying a recursive VAR, the study used 12 variables, including 5 endogenous and 7exogenous variables to the benchmark model and other two specifications were attempted to capture the true contribution of monetary and fiscal policies to variations in nominal output. Obtained results using impulse responses and variance decomposition provide evidence that monetary policy is more effective than fiscal policy in explaining changes in nominal output in Rwanda. In addition, monetary policy explains better output when the VAR model contains domestic exogenous variables than when they are not included, suggesting the relevance of including domestic exogenous variables in VAR specification of monetary and fiscal policies effectiveness on economic variables. Another suggestion is that in order to achieve higher growth, the government of Rwanda should rely more on monetary policy as compared to fiscal policy.

Monetary Integration, Fiscal Divergence and Current Account Imbalances in Europe

2018 ◽  
Vol 15 (1) ◽  
Author(s):  
Gunther Schnabl
Keyword(s):  
Fiscal Policy ◽  
Monetary Union ◽  
Current Account ◽  
European Monetary Union ◽  
Exchange Rate Regime ◽  
Early Years ◽  
Monetary Integration ◽  
Fiscal Policies ◽  
European Monetary ◽  
Panel Regressions

Abstract The paper scrutinizes the role of diverging fiscal policy stances for diverging current account positions in Europe with a focus on the European Monetary Union (EMU). In a heterogeneous monetary union fiscal policy has the task to absorb asymmetric shocks to ensure the efficacy of the one-size monetary policy. It is argued that since the early years of the European Monetary Union divergent fiscal policies combined with monetary expansion constituted a major determinant of current account divergence within the euro area, which finally led into the European debt and financial crisis. Panel regressions reveal a significant impact of fiscal policies on current account positions, which to a large extent are independent from the exchange rate regime and turn out to be contingent on monetary and fiscal policy mix. Based on the findings economic policy recommendations are presented.

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

scholarly journals Optimal Fiscal Policy When Migration Is Feasible

2008 ◽  
Vol 8 (1) ◽  
Author(s):  
Filippo Occhino
Keyword(s):  
Fiscal Policy ◽  
Income Taxes ◽  
Public Expenditures ◽  
Fiscal Policies ◽  
High Productivity ◽  
Free Mobility ◽  
Optimal Fiscal Policy ◽  
Migration Costs ◽  
Limiting Case ◽  
High Migration

Abstract This paper investigates how the feasibility of migration affects governments' optimal fiscal policies. We assume that households migrate toward economies where their welfare is higher, governments choose taxes and public expenditures to maximize a weighted sum of the households' welfare, welfare is increasing in public expenditures, and only distortionary labor income taxes are available. In isolated economies, the optimal fiscal policy implies that some households are net fiscal contributors, while other households are net fiscal beneficiaries. When households can migrate, however, governments compete for the households which are net fiscal contributors, and modify the fiscal policy in their favor, lowering their taxes and net fiscal contribution, and increasing their welfare. The magnitude of the effect increases with the sensitivity of migration to welfare. In the limiting case of free mobility, all households are zero net fiscal contributors. As to the patterns of migration, the model predicts that, with high migration costs, all households migrate toward the same high-productivity countries, which benefits low-productivity households, whereas with low migration costs, households with different productivities migrate toward different countries, which benefits high-productivity households.

Reforming China's Public Finances to Sustain Growth

2014 ◽  
Vol 06 (02) ◽  
pp. 71-85
Author(s):  
Shuanglin LIN ◽  
Sarah Y TONG
Keyword(s):  
Public Finance ◽  
Fiscal Policy ◽  
Local Government ◽  
Income Inequality ◽  
Government Expenditure ◽  
Public Spending ◽  
Government Debt ◽  
Environmental Problems ◽  
Policy Initiatives ◽  
Taxation System

China's public finance is characterised by a pro-growth taxation system, growth enhancing government expenditure and an expansionary fiscal policy. However, reforms are needed to tackle rising income inequality and worsening social and environmental problems, including more public spending and more progressive taxes. Measures are also needed to resolve rising local government debt. The recently concluded Third Plenum has made these its top priorities and announced various policy initiatives.

scholarly journals Fiscal Policy, Consumption Risk, and Stock Returns: Evidence from U.S. States

2018 ◽  
Vol 53 (1) ◽  
pp. 109-136 ◽  
Author(s):  
Zhi Da ◽  
Mitch Warachka ◽  
Hayong Yun
Keyword(s):  
Fiscal Policy ◽  
Stock Returns ◽  
State Level ◽  
Fiscal Policies ◽  
Market Participation ◽  
Consumption Risk

We find that consumption risk is lower in states that implement countercyclical fiscal policies. Moreover, firms with an investor base that is concentrated in countercyclical states have lower stock returns, along with firms that relocate their headquarters to a countercyclical state. Therefore, countercyclical fiscal policies lower the consumption risk of investors and, consequently, their required equity return premium. This conclusion is confirmed by smaller declines in market participation during recessions in countercyclical states. Overall, the location of a firm’s investor base enables state-level fiscal policy to influence stock returns.

A NOTE ON INFLATION DYNAMICS, PRICE VOLATILITY, AND FISCAL ACTIVISM

2019 ◽  
Vol 24 (5) ◽  
pp. 1299-1313
Author(s):  
António Afonso ◽  
João Tovar Jalles
Keyword(s):  
Fiscal Policy ◽  
Significant Positive Correlation ◽  
Negative Impact ◽  
Emerging Market ◽  
Empirical Support ◽  
Price Volatility ◽  
Fiscal Policies ◽  
Inflation Volatility ◽  
Advanced Economies ◽  
Relevant Outcome

Using a panel of 54 countries between 1980 and 2013, we find empirical support for the view that changes in the fiscal policy stance (year-on-year change in the cyclically adjusted primary balance) have a significant positive correlation with inflation volatility. An increase in the volatility of discretionary fiscal policies by one standard deviation raises inflation volatility by about 6%. Moreover, results using alternative inflation volatility proxies confirm that an expansionary fiscal stance increases price volatility. Another relevant outcome is that in a context of economic expansions (recessions) the harmful impact of fiscal activism on price volatility is soft (heightened), while the negative impact of fiscal activism on price stability is higher when fiscal policy is expansionary. Finally, fiscal activism fuels inflation volatility much more pronouncedly in emerging market economies vis-à-vis advanced economies.

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