The paper analyses the medium-term objectives (MTOs) recently adopted by the EU Member States as a reference for the multilateral budgetary surveillance, assessing the ability of the new MTOs to promote long-term fiscal sustainability. The paper calibrates the (yet undisclosed) algorithm for...

To contrast the severe global recession of 2009, governments in most advanced countries implemented expansionary fiscal policies leading to a steep increase in public debt. As economies recover, a critical choice is whether to stabilize debt at post-crisis levels, or to bring it down to...

The global financial crisis has led to a sharp deterioration of EU countries' public finances. Views are split regarding the most appropriate consolidation strategy to follow, in particular considering: the timing of fiscal consolidation in relation to the path of economic recovery reflecting...

In this paper, Ter-Minassian and Fedelino assess the impact of the 2008-09 global financial crisis on sub-national government (SNG) finances. The crisis affected sub-national budgets both directly (via the decline in own revenues and upward pressure on cyclically-sensitive spending programs) and...

This paper describes recent trends on the effectiveness of stabilisers in the European Union. Using both macro evidence on the cyclical sensitivity of budget deficit to economic activity and micro evidence on the tax and expenditure profiles, we conclude, in agreement with the recent literature,...

This paper presents an overview of the fiscal reforms enacted by the countries of Eastern and Central Europe and Central Asia (ECA) during the last two decades, with a focus on Poland, Russia and Turkey. In particular, most of the ECA countries adopted binding budgetary rules in order to reduce...

The purpose of this study is twofold: First, it provides an empirical characterization of fiscal policy in Colombia over the last decades, by assessing the three most relevant macroeconomic factors: the behavior of fiscal policy over the business cycle; whether it has been coherent with the...

In this paper we assess to what extent in the existence of a financial crisis, government spending can contribute to mitigate economic downturns in the short run and whether such impact differs in crisis and non crisis times. We use panel analysis for a set of OECD and non-OECD countries for the...

This paper uses a multi region DSGE model with collateral constrained households and residential investment to examine the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which differ by the type of budgetary measure, its length, the...

The authors argue that the impact of the world financial crisis on Latin America was buffered by lower external private and public debt exposure and better macroeconomic fundamentals, which reduced the negative effects of turbulences on financial systems. Nevertheless, negative effects soon...