The federal government is headed toward a financial crisis as a result of chronic overspending, large deficits, and huge future cost increases in Social Security and Medicare. Social Security and Medicare would be big fiscal challenges even if the rest of the government were lean and efficient,...

An analysis of fiscal adjustment patterns in Central and Eastern Europe and Central Asia is conducted here, including recent years. The main question addressed in the article is whether sustainable fiscal adjustment has been achieved primarily through downsizing potentially less productive...

This study addresses managerial strategies to adapt public spending in anticipation of fiscal stress. It simulates a cutback to a federal agency, providing a decision tool that applies normative recommendations from the cutback management literature. Using agency data, we develop a menu of...

The COVID-19 crisis has caused public debt to increase dramatically, which is why the German and European fiscal rules are currently suspended. In addition to the new assessment of the fiscal costs at low interest rates (r g), the discussion on the reintroduction of fiscal rules in Germany and...

The COVID-19 crisis has caused public debt to increase dramatically, which is why the German and European fiscal rules are currently suspended. In addition to the new assessment of the fiscal costs at low interest rates, the discussion on the reintroduction of fiscal rules in Germany and Europe...

The advanced industrialized world has entered an era of fiscal austerity, with profound implications for international security and the global balance of power. Japan’s predicament is particularly dire: public debt has risen to historically unprecedented levels, and defense expenditures have...

This paper analyzes German and Spanish fiscal policy using simple policy rules. We choose Germany and Spain, as both are Member States in the European Monetary Union (EMU) and underwent considerable increases in public debt in the early 1990s.We focus on the question, how fiscal policy behaves...

The short-term effects of fiscal consolidation have attracted an increasing attention from both the academia and policy makers in the recent years. Authors in the literature on non-Keynesian effects usually put the emphasis on the need for the devaluation of the national currency, the...

In this paper we investigate the possible effects of fiscal tightening in Hungary from two perspectives. First, simulations in an estimated neo-Keynesian model are used to characterise the effects of different scenarios for fiscal consolidations. We show that the composition of fiscal shocks is...

Fiscal policy in the Euro area is still dominated by austerity measures implemented under the institutional setting of the 'reformed' stability and growth pact, and the even stricter 'fiscal compact'. At the same time, calls for a more expansionary fiscal policy to overcome the economic crisis...