Similar Search Results

Assessing debt sustainability in a stochastic environment : 200 years of Dutch debt and deficit management

Wijnbergen, Sweder van; France, Alexander - 2012

Persistent link: https://www.econbiz.de/10010191022

Debt sustainability when r - g < 0 : no free lunch after all

Wijnbergen, Sweder van; Olijslagers, Stan; Vette, Nander de - 2020

Interest rates on public debt have for several years now fallen short of GDP growth rates in much of the Western world. In his presidential address to the AEA Blanchard argued that this implies that there are no fiscal costs to high debt (Blanchard, 2019).1 In this paper we argue that the safe...

Persistent link: https://www.econbiz.de/10012317450

Key issues of central and local government finance in the People's Republic of China

Zhang, Qichun; Shufang, Li - 2016

Fiscal decentralization has been established in the People's Republic of China (PRC), but crises emerge at the local government level due to remaining problems of the fiscal administration system of tax allocation and the impact of replacing the business tax with a value added tax. The PRC...

Persistent link: https://www.econbiz.de/10011576786

Revisiting the public debt stability condition : rethinking the Domar condition

Yoshino, Naoyuki; Miyamoto, Hiroaki - 2020

This paper revisits the fiscal sustainability condition proposed by Domar (1944). The Domar condition is derived from the government budget constraint and thus focuses on the supply side of the government bond. By considering the demand for the government bond, this paper finds that public debt...

Persistent link: https://www.econbiz.de/10012219884

How to build a resilient monetary union? : lessons from the euro crisis

Claeys, Gregory - 2017

This paper describes the institutional flaws that led to the euro crisis, assesses the institutional reforms that were put in place during and in the aftermath of the crisis, and evaluates the remaining fragilities of the architecture of the European monetary union. In mid-2017, growth in the...

Persistent link: https://www.econbiz.de/10011723767

Transmission of government spending shocks in the Euro area : time variation and driving forces

Kirchner, Markus; Cimadomo, Jacopo; Hauptmeier, Sebastian - 2010

This paper provides new evidence on the effects of government spending shocks and the fiscal transmission mechanism in the euro area for the period 1980-2008. Our contribution is two-fold. First, we investigate changes in the macroeconomic impact of government spending shocks using time-varying...

Persistent link: https://www.econbiz.de/10011380027

Government spending shocks, sovereign risk and the exchange rate regime

Bonam, Dennis; Lukkezen, Jasper - 2013

Conventional wisdom teaches that the output response upon a fiscal expansion is higher under fixed than floating exchange rates for a small open economy. We analyse the effects of fiscal expansions using a New Keynesian model and find that this result reverses in times of sovereign default risk....

Persistent link: https://www.econbiz.de/10010227296

Reflections on fiscal coordination and integration in Europe

Cheng, Gong; Korhonen, Kari - 2020

This paper provides an overview of the key steps that were made in the European Union toward enhancing fiscal policy coordination and integration prior to the Covid-19 crisis. It especially highlights the key challenges and strategies that should be considered when thinking of further fiscal...

Persistent link: https://www.econbiz.de/10012262584

Private and public risk sharing in the Euro area

Cimadomo, Jacopo; Furtuna, Oana; Giuliodori, Massimo M. - 2017 - This version: 11 July 2017

This paper investigates the contribution of private and public channels for consumption risk sharing in the EMU over … estimating how risk sharing has evolved since the start of the EMU, and in particular during the recent crisis. Our results … suggest that, whereas in the early years of the EMU only about 40% of output shocks were smoothed, in the aftermath of the …

Persistent link: https://www.econbiz.de/10011688776

Three arrows of "Abenomics" and the structural reform of Japan : inflation targeting policy of the Central Bank, fiscal consolidation, and growth strategy

Yoshino, Naoyuki; Taghizadeh-Hesary, Farhad - 2014

"Abenomics" refers to the economic policies advocated by Prime Minister Shinzo Abe who became prime minister of Japan for a second time when his party, the Liberal Democratic Party, won an overwhelming majority at the general election in December 2012. Abenomics has "three arrows": (i)...

Persistent link: https://www.econbiz.de/10010384376