This paper shows that the impact of changes in budgetary variables on major macroeconomic variables varies in sign and magnitude in times of crisis and non-crisis in France. We find that these nonlinearities are both frequent (as they exist on all behaviors analyzed: real GDP, private...

With the global crisis, the policy stance around the world has been shaken by massive government and central bank efforts to prevent the meltdown of markets, banks, and the economy. Fiscal packages, in varied sizes, have been adopted throughout the world after years of proclaimed fiscal...

Abstract: This paper develops a conceptual framework for the analysis of hard and soft law that is drawn in part from recent work in the field of international relations. We examine the literature on the role of soft law, noting that scholars have approached this phenomenon in very different...

The EMU assigns a very marginal role to economic policy and relies on the leading idea that, if prices are kept constant, there will be an automatic convergence towards long-run equilibrium income. These beliefs represent the theoretical underpinnings of fiscal and monetary policy strategies in...

Fiscal policy was key determinant of macroeconomic behavior during the 80s, however it is necessary to distinguish the effects of shocks over fiscal policy from those resulting of policy decisions. For that purpose the study uses, with an adjustment, the methodology developed by Marshall and...

Remarks before the Equipment Leasing and Finance Association Financial Institutions Conference, Irving, Texas, April 16, 2007 ; "Yes, we remain the biggest player on the global stage, but if we fail to get our fiscal house in order, we could bequeath our descendants unconscionable debt and slow...

The State, irrespective of its institutional nature and contents throughout history, has been the most important answer or, better said, the best-structured solution of society members to the issues of their world’s complexity. Processes such as globalization and integration, individuals’...

This paper formalizes the link among electoral uncertainty, fiscal policy and economic growth. The setup is a dynamic general equilibrium model of optimal growth and fiscal policy, in which fiscal policy is endogenized through a game between two political parties that can alternate in power.

This paper examines whether incumbent national governments of the member states of the European Union have manipulated the fiscal policy instruments at their disposal in order to create national political business cycles, opportunistic or partisan, in the 1970-98 period.