The study provides a detailed review of the past fiscal trends in India, analyzes the current fiscal situation at the Centre and the States and attempts to project the likely alternative scenarios for the future. The study identifies the possible corrective measures that need to be taken to...

President Biden has proposed an increase in corporate taxes to help "pay for" the American Families Plan. An examination of who actually pays corporate taxes shows that the impact of an increase in corporate taxes may be less than imagined and those who "pay" include many who are not the...

We develop the theory of price-level determination in a range of models using both ad hoc policy rules and jointly optimal monetary and fiscal policies and discuss empirical issues that arise when trying to identify monetary–fiscal regime. The chapter concludes with directions in which...

Until the early 1990s, the discussions on fiscal policy primarily centered on the functions of economic stabilization, income redistribution and resource allocation. Long-term growth was not usually viewed as an end itself, and fiscal policy was often not sufficiently tailored to the different...

This paper uses the sector financial balances model of aggregate demand to illustrate the effects of fiscal austerity policies on the economy. It further demonstrates that government deficits are not directly controllable by policy makers but are rather endogenous to the responses of the private...

Fiscal consolidation is used as a synonym for austerity much as debt restructuring is used as a euphemism for partial repudiation. Inside the political arena of international economics, the nomenclature of government officials in policy debates adopts colorful terminology, such as healthy public...

We study how the financial sector affects fiscal and monetary policy in heterogeneous agent New Keynesian (HANK) economies. We show that, in a large class of models of financial intermediation, relevant features of the financial sector are summarized by the elasticities of a liquid asset supply...

This paper describes recent trends on the effectiveness of stabilisers in the European Union. Using both macro evidence on the cyclical sensitivity of budget deficit to economic activity and micro evidence on the tax and expenditure profiles, we conclude, in agreement with the recent literature,...

This paper investigates the unemployment effects of fiscal policy in Greece based on the SVAR methodology. We find evidence that the unemployment and growth effects can be quite sizeable in case of cuts in government purchases and in particular government consumption and to a lesser extent...