Similar Search Results

The Role of Fiscal Policies for External Imbalances : Evidence from the European Union

Afonso, António; Coelho, José - 2021

two deficits is asymmetric and the negative impact of the recent Eurozone banking and sovereign debt crisis on the current … positive impact of the budget balance on the current account balance is higher in the cases of non-Eurozone countries, high … budget deficit countries, and low exports countries, whereas it is lower in the cases of Eurozone countries, low budget …

Persistent link: https://www.econbiz.de/10013247757

Euro Area Time-Varying Cyclicality of Fiscal Policy

Afonso, António; Carvalho, Francisco Tiago - 2021

We assess the cyclicality of fiscal policy in the 19 Euro area countries, notably during recessions, for the period 1995-2020. We use a time-varying measure of fiscal cyclicality to describe fiscal policy developments. The results suggest that during recessions discretionary fiscal policy...

Persistent link: https://www.econbiz.de/10013321855

Public Finances Solvency in the Euro Area : True or False?

Afonso, António; Coelho, José Carlos - 2022

We assess public finances solvency for Euro Area countries using quarterly data between 1999Q1 and 2020Q4. Through a country-by-country analysis, the answer to the title question is true. For most countries, (i) the primary budget balance reacts positively to the lagged public debt ratio and...

Persistent link: https://www.econbiz.de/10014077368

The Effects of Macroeconomic, Fiscal and Monetary Policy Announcements on Sovereign Bond Spreads : An Event Study from the EMU

Afonso, António; Jalles, João Tovar; Kazemi, Mina - 2019

We assess the impact of announcements corresponding to different fiscal and monetary policy measures on the 10-year sovereign bond yield spreads (relative to Germany) of the 10 EMU countries during the period 01:1999 - 07:2016. Implementing pooled and country-fixed effects OLS regressions, we...

Persistent link: https://www.econbiz.de/10014108277

Twin Deficits Through the Looking Glass : Time-Varying Analysis in the Euro Area

Afonso, António; Coelho, José - 2022

Using two measures of the fiscal position, the cyclically adjusted primary budget balance (CAPB) and the total budget balance, we assess the Twin Deficit Hypothesis for the Euro Area in the period 1995-2020. Furthermore, we estimate time-varying coefficients of the current account balance...

Persistent link: https://www.econbiz.de/10013307056

The Effects of Monetary Policy Surprises and Fiscal Sustainability Regimes in the Euro Area

Afonso, António; Alves, José; Ionta, Serena - 2023

We study the effect of monetary surprise shocks on real output and the price level, conditioned on different fiscal sustainability regimes in the period 2001Q4-2021Q4. First, we estimate time-varying fiscal sustainability coefficients based on Bohn’s (1998) approach through Schlicht’s (2003)...

Persistent link: https://www.econbiz.de/10014346577

The design of fiscal rules and forms of governance in European Union countries

Hallerberg, Mark; Strauch, Rolf; Hagen, Jürgen von - 2006

This paper uses a new data set on budgetary institutions in Europe to examine the impact of fiscal rules and budget procedures in EU countries on public finances. It briefly describes the main pattern of budgetary institutions and their determinants across the EU 15 member states. Empirical...

Persistent link: https://www.econbiz.de/10010343939

Fiscal rules and fiscal performance in the EU and Japan

Hagen, Jürgen von - 2006

Fiscal rules specify quantitative targets for key budgetary aggregates. In this paper, we review the experience with such rules in Japan and in the EU. Comparing the performance of fiscal policy in the 1980s and 1990s until 2003, we find that the fiscal rule of the 1980s exerted some but not...

Persistent link: https://www.econbiz.de/10010374865

What do deficits tell us about debt? : empirical evidence on creative accounting with fiscal rules in the EU

Hagen, Jürgen von; Wolff, Guntram B. - 2006

Fiscal rules, such as the Excessive Deficit Procedure and the Stability and Growth Pact (SGP), aim at constraining government behavior. Milesi-Ferretti (2003) develops a model in which governments circumvent such rules by reverting to creative accounting. The amount of this depends on the...

Persistent link: https://www.econbiz.de/10010366529

Sovereign risk premiums in the European Government bond market

Bernoth, Kerstin; Hagen, Jürgen von; Schuknecht, Ludger - 2006

This paper provides a study of bond yield differentials among EU government bonds issued between 1993 and 2005 on the basis of a unique dataset of issue spreads in the US and DM (Euro) bond market. Interest differentials between bonds issued by EU countries and Germany or the USA contain risk...

Persistent link: https://www.econbiz.de/10010365887