Optimal Fiscal Policies After The “Great Recession”: A Case Study For Slovenia

2016 ◽  
Author(s):  
Reinhard Neck ◽  
Dmitri Blueschke ◽  
Klaus Weyerstrass
Keyword(s):  
Great Recession ◽  
Fiscal Policies ◽  
The Great Recession

scholarly journals Inspecting the Mechanism: Leverage and the Great Recession in the Eurozone

2017 ◽  
Vol 107 (7) ◽  
pp. 1904-1937 ◽  
Author(s):  
Philippe Martin ◽  
Thomas Philippon
Keyword(s):  
Market Segmentation ◽  
Great Recession ◽  
Fiscal Policies ◽  
Labor Costs ◽  
The Great Recession ◽  
Credit Cycles ◽  
Macroprudential Policies ◽  
Fiscal Austerity ◽  
The Impact ◽  
Identification Strategy

We provide a comprehensive account of the dynamics of eurozone countries from 2000 to 2012. We analyze private leverage, fiscal policy, labor costs, and spreads, and we propose a model and an identification strategy to separate the impact of credit cycles, excessive government spending, and sudden stops. We then ask how periphery countries would have fared with different policies. We find that countries could have stabilized their employment if they had followed more conservative fiscal policies during the boom. Macroprudential policies and an early intervention by the central bank to prevent market segmentation and reduce fiscal austerity would also have significantly reduced the recession. (JEL E24, E32, E58, E62, F33, F42, H61)

scholarly journals Activist Fiscal Policy

2010 ◽  
Vol 24 (4) ◽  
pp. 141-164 ◽  
Author(s):  
Alan J Auerbach ◽  
William G Gale ◽  
Benjamin H Harris
Keyword(s):  
Fiscal Policy ◽  
Interest Rates ◽  
Great Recession ◽  
Economic Conditions ◽  
Fiscal Policies ◽  
The Great Recession ◽  
Policy Interventions ◽  
Low Interest Rates ◽  
The Many ◽  
Monetary And Fiscal Policy

During and after the “Great Recession” that began in December 2007 the U.S. federal government enacted several rounds of activist fiscal policy. In this paper, we review the recent evolution of thinking and evidence regarding the effectiveness of activist fiscal policy. Although fiscal interventions aimed at stimulating and stabilizing the economy have returned to common use, their efficacy remains controversial. We review the debate about the traditional types of fiscal policy interventions, such as broad-based tax cuts and spending increases, as well as more targeted policies. While there have been improvements in estimates of the effects of broad-based policies, much of what has been learned recently concerns how such multipliers might vary with respect to economic conditions, such as the credit market disruptions and very low interest rates that were central features of the Great Recession. The eclectic and innovative interventions by the Federal Reserve and other central banks during this period highlight the imprecise divisions between monetary and fiscal policy and the many channels through which fiscal policies can be implemented.

Anti-Establishment Parties in Government

2021 ◽  
Vol 45 (1) ◽  
pp. 19-47
Author(s):  
Vasiliki Georgiadou ◽  
Jenny Mavropoulou
Keyword(s):  
Great Recession ◽  
Party System ◽  
Radical Right ◽  
Coalition Government ◽  
Supply Side ◽  
Right Wing ◽  
Left Wing ◽  
The Great Recession ◽  
Chapel Hill

Abstract Anti-establishment parties with either a left-wing or a right-wing ideological slant have been entering contemporary European Democracies with sizeable vote shares. During the Great Recession, the Greek party system could be perceived as a relevant case-study for the formation and breakthrough of anti-establishment parties. Given the fact that two deeply ideologically diverging anti-establishment parties, the Coalition of the Radical Left – Social Unionist Front (syriza) and the populist radical right-wing Independent Greeks (anel), came to power, forming a coalition government from early 2015 to January 2019, the primary goal of this article is to enquire into ‘supply-side’ parameters, exploring potential associations along a range of programmatic stances and policy dimensions that effectuated the syriza-anel alliance. Using the Comparative Manifesto Project and the Chapel Hill Expert Survey datasets from 2012 to 2017, our findings confirm beyond the expected programmatic differences the existence of a converging policymaking basis between syriza and anel which goes beyond the ‘pro-Memorandum vs. anti-Memorandum’ divide.

scholarly journals Demand and growth regimes in finance-dominated capitalism and the role of the macroeconomic policy regime: a post-Keynesian comparative study on France, Germany, Italy and Spain before and after the Great Financial Crisis and the Great Recession

2021 ◽  
Author(s):  
Eckhard Hein ◽  
Judith Martschin
Keyword(s):  
Open Economy ◽  
Great Recession ◽  
Macroeconomic Policy ◽  
Fiscal Policies ◽  
Policy Regime ◽  
Policy Regimes ◽  
The Great Recession ◽  
Before And After ◽  
Big Four

AbstractWe contribute to the recent debates on demand and growth regimes in modern finance-dominated capitalism linking them to the post-Keynesian research on macroeconomic policy regimes. We examine the demand and growth regimes, as well as the macroeconomic policy regimes for the big four Eurozone countries, France, Germany, Italy and Spain, for the periods 2001–2009 and 2010–2019. First, our approach supports the usefulness of the identification of demand and growth regimes according to growth contributions of the main demand components and financial balances of the macroeconomic sectors. This allows for an understanding of the demand sources of growth, or stagnation, if there is a lack of demand, of how these sources are financed and of potential financial instabilities and fragilities. Second, when it comes to the macroeconomic policy drivers of demand and growth regimes, as well as their respective changes, we show that the exclusive focus on fiscal policies, as in the previous literature, is too limited and that it is the macroeconomic policy regime which matters here, i.e. the combination of monetary, fiscal and wage policies, as well as the open economy conditions.

scholarly journals Employment practices, labour flexibility and the Great Recession: An automotive case study

2018 ◽  
Vol 40 (3) ◽  
pp. 537-559
Author(s):  
Stewart Johnstone
Keyword(s):  
Great Recession ◽  
Large Scale ◽  
Employment Practices ◽  
Improve Efficiency ◽  
The Great Recession ◽  
Automotive Parts ◽  
Labour Flexibility ◽  
Different Levels

Most British firms adjusted employment practices in some way in response to the 2008 recession, though compared with previous recessions there were fewer redundancies than might have been anticipated given the severity of the downturn. While it has been suggested that employers may have utilised alternative flexibility strategies which ameliorated the need for downsizing, there are few studies of how employers responded as they did at the company level. This article presents an in-depth case study of an automotive parts manufacturer deeply affected by recession but which did not make large-scale redundancies. The study reveals how existing labour flexibility strategies, and especially numerical flexibility, helped the firm navigate recession. However, the study also reveals how staffing practices have been modified since the recession as part of an organisational attempt to improve efficiency. This is achieved by segmenting the workforce into three groups with different levels of certainty and security.

Case Study

2019 ◽  
pp. 229-240
Author(s):  
Gary Smith ◽  
Jay Cordes
Keyword(s):  
Great Recession ◽  
Financial Engineering ◽  
Data Science ◽  
Credit Ratings ◽  
Public And Private ◽  
Rating Agencies ◽  
The Great Recession ◽  
Bad Data

In the 1970s banks began selling mortgages to public and private mortgage funds that sell shares to investors. In the late 1990s and early 2000s, many mortgages to “subprime” borrowers with low credit ratings and modest income were approved because banks and mortgage brokers made money by making loans and then selling them, and didn’t care if borrowers defaulted. Matters were complicated by financial engineering and compliant rating agencies. The Great Recession resulted from many people falling into several of the pitfalls of data science. They fooled themselves, they worshipped mathematics, they used bad data, they tortured data, and they did harm.

Fiscal policies in a monetary union: the eurozone case

2020 ◽  
Vol 17 (2) ◽  
pp. 156-170
Author(s):  
Gennaro Zezza
Keyword(s):  
Great Recession ◽  
Public Expenditure ◽  
Fiscal Policies ◽  
Unemployment Benefits ◽  
Medium Term ◽  
The Great Recession ◽  
Financial Position ◽  
Fiscal Austerity ◽  
Severe Recession ◽  
The Cost

We argue that the institutional framework of the eurozone was designed to deny a role for fiscal policy. However, the Great Recession of 2008–2009 forced governments to intervene, mainly to avoid the collapse of their financial systems. At the same time, the severe recession implied a decrease in tax revenues, and an increase in some components of public expenditure – such as unemployment benefits, which implied an increase in public deficits. When the crisis seemed to be over, the Maastricht rules gave priority to restoring fiscal targets, even at the cost of prolonged unemployment and stagnation in countries like Greece and Italy. Using the three-balances approach pioneered by Godley, we argue that such policies require the achievement of an external surplus, or else fiscal austerity will worsen the financial position of the private sector. We show that this is indeed how most eurozone countries moved, and argue that such policies are fragile, and possibly not sustainable in the medium term. We suggest the introduction of fiscal currencies as one way of introducing a degree of freedom in the sustainability of the eurozone.

scholarly journals The Impact of the Great Recession on Monetary and Fiscal Policy in Developed Market Economies

2015 ◽  
Vol 6 (1) ◽  
pp. 56-71 ◽  
Author(s):  
Damir Šehović
Keyword(s):  
Fiscal Policy ◽  
Great Recession ◽  
Fiscal Policies ◽  
Market Economies ◽  
The Great Recession ◽  
The Great Depression ◽  
Theoretical Assumptions ◽  
Monetary And Fiscal Policy ◽  
The Impact

Abstract Background: With the occurrence of the crisis in 2007, which caused the largest economic contraction since the Great Depression in the thirties, it has become evident that the previous understanding of strategies, effects and roles of monetary and fiscal policy should be redefined. Objectives: The aim of this paper is to illustrate a possible expected change in monetary and fiscal policy in developed market economies that could occur as a consequence of the Great Recession. Methods/Approach: The paper provides a comparative analysis of various primary economic variables related to the developed OECD countries, as well as the empirical testing of the selected theoretical assumptions. Results: The changes in monetary policy refer to the question of raising target inflation, considering a possible use of aggregate price level targeting and paying attention to the role of central banks in suppressing the formation of an asset bubble. The success of fiscal policy in attaining stabilization depends on the size of possible fiscal measures and creation of automatic stabilizers. Conclusions: For the most part, monetary and fiscal policies will still stay unchanged, although some segments of these policies need to be improved.

scholarly journals Advertising Effectiveness during the Great Recession: the Case Study for Three FMCG Italian Food Categories

2020 ◽  
Vol 17 ◽  
Keyword(s):  
Great Recession ◽  
Advertising Effectiveness ◽  
The Great Recession ◽  
Distributed Lag ◽  
Distributed Lag Models ◽  
Economic Downturns ◽  
Auto Regressive ◽  
Advertising Spending ◽  
Selection Of

The present study is concerned with the reactions of consumers and firms to economic downturns. Specifically, it investigates to what extent the advertising has been used as marketing instrument to support brand sales during the downturn in business cycle (Great Recession 2011-2015) and whether advertising expenditures has significantly increased sales. The focus is on three Fast Moving Consumer Goods (FMCG) Italian food categories. We use Auto-Regressive Distributed Lag models (ARDL). As a whole, our results support the presence of significant effects of own advertising for a selection of brands, not the whole, within the three analyzed categories. Moreover, advertising spending by competitors acts negatively in two categories out of three.

Sign in / Sign up

Export Citation Format

Share Document