Liability-creating versus non-liability-creating fiscal stabilisation policies: Ricardian equivalence, fiscal stabilisation and EMU
Article Abstract:
Stabilization policy is more effective in suppressing shocks to consumption, according to a study aimed at providing empirical evidence on the relative effectiveness of stabilization at various sectors of government and evaluating the effect of fiscal policy in federal systems. Idiosyncratic shocks are cushioned more efficiently by federal fiscal policy that comprises a level of redistribution across provinces. Moreover, the negative result from the Ricardian effects related with tax liabilities is smaller.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1998
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Fiscal dimensions of EMU
Article Abstract:
Three important issues on the European Union's (EU) fiscal policy in relation to membership in the European Monetary Union (EMU) are discussed. The issues are the debt and deficit criteria as requirements for membership, the necessity of fiscal discipline and policy coordination in EMU and the establishment of an EU fiscal authority in conjunction with a monetary union. The EU has set a deficit limit of 3% of GDP to qualify for membership in the EMU.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1996
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Gaining and losing ERM credibility: the case of the United Kingdom
Article Abstract:
The UK's economic policies with respect to currency or monetary devaluation, control of inflation and reduction of unemployment are analyzed via a model that focuses on government credibility in terms of its commitment to uphold the European Monetary System rules. The UK's decision to let its currency float instead of letting it deviate within the narrow band set by the ERM only after two years of membership with the ERM is analyzed.
Publication Name: Economic Journal
Subject: Economics
ISSN: 0013-0133
Year: 1995
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