We investigate the impact of fiscal variables on bond yield spreads relative to US Treasury bonds in the Czech Republic, Hungary, Poland, Russia and Turkey from May 1998 to December 2007. To account for the importance of market expectations we use projected values for fiscal and macroeconomic...

This paper presents major challenges for Poland's fiscal policy and strategic choices which have to be made in the area of economic policy in Poland's nearest future. The space to manoeuvre in Polish fiscal policy is very narrow. The most important constraint is not the formal one (Polish...

Fiscal policy in Poland faces challenges both in the view of the critical position of public finance in the recent years and the UE accession. The Polish economy performance in the Union, when assessed from the perspective of the participation in the euro area, requires not only the fulfilment...

This paper analyzes the effects of the implementation of a monetary union on the international transmission of monetary and fiscal policies. A dynamic three-country general equilibrium model, exhibiting monopolistic competition and sticky prices, is used to show how asymmetric monetary and...

The United Kingdom employed the McKenna rule to conduct fiscal policy during World War I (WWI) and the interwar period. Named for Reginald McKenna, Chancellor of the Exchequer (1915–16), the McKenna rule committed the United Kingdom to a path of debt retirement, which we show was...

This paper computes welfare-maximizing monetary and fiscal policy rules in a real business cycle model augmented with sticky prices, a demand for money, taxation, and stochastic government consumption. We consider simple feedback rules whereby the nominal interest rate is set as a function of...