Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper provides some empirical estimates on how tightly is it feasible to control inflation in a very small open economy such as Iceland. Estimated macroeconomic models of Canada, Iceland, New Zealand, the United Kingdom, and the United States are used to derive efficient monetary policy frontiers that trace out the locus of the lowest combinations of inflation and output variability that are achievable under a range of alternative monetary policy rules. These frontiers illustrate that inflation stabilization is more challenging in Iceland than in other industrial countries primarily because of the relative magnitudes of the economic shocks.

Electronic books. -- local. --- Finance -- Iceland. --- Inflation (Finance) -- Iceland. --- Finance --- Business & Economics --- Financial Management & Planning --- Inflation (Finance) --- Funding --- Funds --- Economics --- Currency question --- Natural rate of unemployment --- Inflation --- Macroeconomics --- Money and Monetary Policy --- Public Finance --- Production and Operations Management --- Price Level --- Deflation --- Fiscal Policy --- Monetary Policy --- Macroeconomics: Production --- Monetary economics --- Fiscal policy --- Inflation targeting --- Fiscal stance --- Output gap --- Prices --- Monetary policy --- Production --- Economic theory --- Iceland

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper examines the macroeconomic effects of different timing and composition of fiscal adjustment in the United Kingdom using the IMF’s Global Fiscal Model. Early consolidation dampens aggregate demand in the short term, but increases output in the long term as smaller primary surpluses are needed as a result of lower interest payments. Reducing government transfers or current government spending provides larger gains than increasing taxes, in particular compared to raising corporate or personal income taxes. We show that these conclusions are robust under alternative behavioral assumptions and parameterizations. A reduction in global saving would make early consolidation more urgent from both cyclical and long-term perspectives. Finally, we show that tax reform aimed at increasing incentives to save could provide support to fiscal consolidation measures.

Electronic books. -- local. --- Finance, Public -- Great Britain -- Econometric models. --- Fiscal policy -- Great Britain -- Econometric models. --- Political Science --- Law, Politics & Government --- Public Finance --- Fiscal policy --- Finance, Public --- Econometric models. --- Cameralistics --- Public finance --- Tax policy --- Taxation --- Government policy --- Currency question --- Economic policy --- Public finances --- Macroeconomics --- Personal Finance -Taxation --- Personal Income and Other Nonbusiness Taxes and Subsidies --- Debt --- Debt Management --- Sovereign Debt --- Fiscal Policy --- National Government Expenditures and Related Policies: General --- Public finance & taxation --- Welfare & benefit systems --- Public debt --- Fiscal consolidation --- Labor taxes --- Personal income tax --- Expenditure --- Income tax --- Debts, Public --- Expenditures, Public --- United Kingdom

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Mexico’s fiscal response to the pandemic has been modest compared to its peers, reflecting the authorities’ desire to not issue new debt for spending. This approach, however, risks a more severe recession and a weaker economic recovery, with further costs in the future. Balancing the need for stronger near-term fiscal support for the people and the recovery against medium-term discipline, this paper lays out an alternative strategy. We show that credibly announcing a pro-growth and inclusive medium-term fiscal reform upfront—including increased tax capacity, higher public investment and strengthened social safety nets—would open space for larger short-term support and close medium-term fiscal gaps. Model simulations suggest that this package would boost output, limit lasting economic damage from the pandemic, and put debt trajectory on a declining path in the medium term as tax reforms pay off and risk premia decline.

Business and Economics --- Public Finance --- Diseases: Contagious --- National Government Expenditures and Welfare Programs --- Fiscal Policy --- Taxation, Subsidies, and Revenue: General --- National Government Expenditures and Health --- National Government Expenditures and Related Policies: Infrastructures --- Other Public Investment and Capital Stock --- Health Behavior --- Public finance & taxation --- Macroeconomics --- Infectious & contagious diseases --- Social assistance spending --- Fiscal policy --- Revenue administration --- Health care spending --- Public investment spending --- Expenditure --- COVID-19 --- Health --- Expenditures, Public --- Revenue --- Public investments --- Communicable diseases --- Mexico

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Latin America’s bold fiscal policy reaction to the global financial crisis was hailed as a sign that the region had finally overcome its procyclical fiscal past. However, most countries of the region have not yet rebuilt their fiscal space, despite buoyant commodity revenues and relatively strong growth in the aftermath of the crisis. Using the experience of Brazil, Chile, Colombia, Mexico, Peru, and Uruguay, this paper examines the lessons and legacies of the crisis by addressing the following questions, among others: How much did the 2009 fiscal stimulus help growth? What shortcomings were revealed in the fiscal policy frameworks? What institutional reforms are now needed to provide enduring anchors for fiscal policy? How much rebuilding of buffers is needed going forward?.

Macroeconomics --- Public Finance --- Fiscal Policy --- Structure, Scope, and Performance of Government --- Fiscal Policies and Behavior of Economic Agents: General --- National Government Expenditures and Related Policies: General --- National Budget, Deficit, and Debt: General --- Debt --- Debt Management --- Sovereign Debt --- Public finance & taxation --- Fiscal policy --- Public debt --- Fiscal stance --- Expenditure --- Fiscal governance --- Debts, Public --- Expenditures, Public --- Brazil

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

The Flexible System of Global Models (FSGM) is a group of models developed by the Economic Modeling Division of the IMF for policy analysis. A typical module of FSGM is a multi-region, forward-looking semi-structural global model consisting of 24 regions. Using the three core modules focused on the G-20, the euro area, and emerging market economies, this paper outlines the theory under-pinning the model, and illustrates its macroeconomic properties by presenting its responses under a wide range of experiments, including monetary, financial, demand, supply, fiscal and international shocks.

Econometrics. --- Monetary policy--Econometric models. --- Fiscal policy--Econometric models. --- Economics, Mathematical --- Statistics --- Exports and Imports --- Inflation --- Macroeconomics --- General Aggregative Models: Keynes --- Keynesian --- Post-Keynesian --- General Aggregative Models: Forecasting and Simulation --- Monetary Policy --- Fiscal Policy --- Open Economy Macroeconomics --- Macroeconomic Aspects of International Trade and Finance: Forecasting and Simulation --- Trade: General --- Macroeconomics: Consumption --- Saving --- Wealth --- Price Level --- Deflation --- Energy: Demand and Supply --- Prices --- International economics --- Consumption --- Oil prices --- Exports --- Imports --- National accounts --- International trade --- Economics --- United States --- Monetary policy --- Fiscal policy --- Econometric models.