Read Books Online and Download eBooks, EPub, PDF, Mobi, Kindle, Text Full Free.
How Big Are Fiscal Multipliers In Latin America
Download How Big Are Fiscal Multipliers In Latin America full books in PDF, epub, and Kindle. Read online How Big Are Fiscal Multipliers In Latin America ebook anywhere anytime directly on your device. Fast Download speed and no annoying ads. We cannot guarantee that every ebooks is available!
Book Synopsis How Big are Fiscal Multipliers in Latin America? by : Jorge Restrepo
Download or read book How Big are Fiscal Multipliers in Latin America? written by Jorge Restrepo and published by International Monetary Fund. This book was released on 2020-01-31 with total page 23 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper uses the strategy and data of Blanchard and Perotti (BP) to identify fiscal shocks and estimate fiscal multipliers for the United States. With these results, it computes the cumulative multiplier of Ramey and Zubairy (2018), now common in the literature. It finds that, contrary to the peak and through multipliers reported by BP, the cumulative tax multiplier is much larger than the cumulative spending one. Hence, the conclusions depend on the definition of multiplier. This methodology is also used to estimate the effects of fiscal shocks on economic activity in eight Latin American countries. The results suggest that the fiscal multipliers vary significantly across countries, and in some cases multipliers are larger than previously estimated.
Book Synopsis The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America by : Mr.Yan Carriere-Swallow
Download or read book The Macroeconomic Effects of Fiscal Consolidation in Emerging Economies: Evidence from Latin America written by Mr.Yan Carriere-Swallow and published by International Monetary Fund. This book was released on 2018-06-13 with total page 42 pages. Available in PDF, EPUB and Kindle. Book excerpt: We estimate the short-term effects of fiscal consolidation on economic activity in 14 countries in Latin America and the Caribbean. We examine contemporaneous policy documents to identify changes in fiscal policy motivated by a desire to reduce the budget deficit and not by responding to prospective economic conditions. Based on this narrative dataset, our estimates suggest that fiscal consolidation has contractionary effects on GDP, consistent with a multiplier of 0.9. We find these effects to be close to those in OECD countries based on a similarly constructed dataset (Devries and others, 2011). We also find similar estimation results for the two groups of economies for the effect of fiscal consolidation on the external current account balance, providing support for the twin deficits hypothesis.
Book Synopsis Fiscal Rules and Economic Size in Latin America and the Caribbean by : Fernando Blanco
Download or read book Fiscal Rules and Economic Size in Latin America and the Caribbean written by Fernando Blanco and published by World Bank Publications. This book was released on 2020-10-10 with total page 198 pages. Available in PDF, EPUB and Kindle. Book excerpt: Following the collapse of commodity prices in Latin America and the Caribbean (LAC) in 2014-15, many countries in the region were unable to cushion the impact of the shock in order to experience a more gradual adjustment, to a large extent because they had not built adequate fiscal buffers during the commodities’ windfall from 2010-14. Many LAC countries entered 2020 and the COVID-19 crisis in an even more difficult position, with rising debt and limited fiscal space to smooth the negative impacts of the pandemic and adequately support their economies. Fiscal policy in most LAC countries has been procyclical. Public expenditure and debt levels have expanded in good times and contracted in severe downswings due to insufficient fiscal buffers, making crises deeper. Fiscal rules represent a promising policy option for these and other economies. If well-designed and implemented, they can help build buffers during periods of strong economic performance that will be available during rainy days to smooth economic shocks. This book—which was prepared before the COVID-19 crisis—reviews the performance and implementation of different fiscal rules in the region and world. It provides analytical and practical criteria for policy makers for the design, establishment, and feasible implementation of fiscal rules based on each country's business cycle features, external characteristics, type of shocks faced, initial fiscal conditions, technical and institutional capacities, and political context. While establishing new fiscal rules would not help to attenuate the immediate effects of this pandemic crisis, higher debt levels in the aftermath of COVID-19 will demand rebuilding better and stronger institutional frameworks of fiscal policy in LAC and emerging economies globally. Having stronger fiscal mechanisms that include fiscal rules can help countries prepare for the next crisis and should be on the front burner for policy makers in coming years. The findings and lessons discussed apply to economies of different sizes, with some differences under certain scenarios in terms of the technical design and criteria needed for implementation. In this book, policy makers will find that fiscal rules, if tailored to country characteristics, can work and be an essential fiscal tool for larger and particularly smaller economies.
Book Synopsis How Big (Small?) are Fiscal Multipliers? by : Ethan Ilzetzki
Download or read book How Big (Small?) are Fiscal Multipliers? written by Ethan Ilzetzki and published by International Monetary Fund. This book was released on 2011-03-01 with total page 68 pages. Available in PDF, EPUB and Kindle. Book excerpt: We contribute to the intense debate on the real effects of fiscal stimuli by showing that the impact of government expenditure shocks depends crucially on key country characteristics, such as the level of development, exchange rate regime, openness to trade, and public indebtedness. Based on a novel quarterly dataset of government expenditure in 44 countries, we find that (i) the output effect of an increase in government consumption is larger in industrial than in developing countries, (ii) the fisscal multiplier is relatively large in economies operating under predetermined exchange rate but zero in economies operating under flexible exchange rates; (iii) fiscal multipliers in open economies are lower than in closed economies and (iv) fiscal multipliers in high-debt countries are also zero.
Book Synopsis Fiscal Multipliers and Institutions in Peru by : Svetlana Vtyurina
Download or read book Fiscal Multipliers and Institutions in Peru written by Svetlana Vtyurina and published by International Monetary Fund. This book was released on 2016-09-07 with total page 24 pages. Available in PDF, EPUB and Kindle. Book excerpt: With the end of the commodity super cycle, Peru’s potential growth has declined, raising questions of what government policies could do to help boost growth, including over the medium-term. Our econometric analysis shows that public investment multipliers have a larger effect on growth than current spending or tax-related stimulus in the short and medium terms. Peru’s low debt and financial savings grants fiscal space for increasing investment spending, which could also entice and complement private investment, provided the former is efficient, fiscally sustainable and complemented by further reforms in public investment management and changes to the decentralization framework.
Book Synopsis A New Action-based Dataset of Fiscal Consolidation in Latin America and the Caribbean by : Mr.Antonio David
Download or read book A New Action-based Dataset of Fiscal Consolidation in Latin America and the Caribbean written by Mr.Antonio David and published by International Monetary Fund. This book was released on 2018-04-26 with total page 67 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a new database of fiscal consolidations for 14 Latin American and Caribbean economies during 1989-2016. We focus on discretionary changes in taxes and government spending primarily motivated by a desire to reduce the budget deficit and long-term fiscal health and not by a response to prospective economic conditions. To identify the motivation and budgetary impact of the fiscal policy changes, we examine contemporaneous policy documents, including Budgets, central bank reports, and IMF and OECD reports. The resulting series can be used to estimate the macroeconomic effects of fiscal consolidation for these economies
Book Synopsis Fiscal Policy in Latin America by : Oya Celasun
Download or read book Fiscal Policy in Latin America written by Oya Celasun and published by International Monetary Fund. This book was released on 2015-04-30 with total page 37 pages. Available in PDF, EPUB and Kindle. Book excerpt: 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?
Book Synopsis Fiscal Policy Effects and Capital Mobility in Some Latin American Countries by : Jose Mora Mora
Download or read book Fiscal Policy Effects and Capital Mobility in Some Latin American Countries written by Jose Mora Mora and published by . This book was released on 2019 with total page 35 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies the relationship between the size of the fiscal multiplier and the degree of capital mobility in some Latin American countries. The Mundell (1963) and Fleming (1962) model establishes that this effect might be very large or very small (very close to zero) depending on the exchange rate regime and the degree of capital mobility; the potency of fiscal policy is inversely correlated with the degree of capital mobility. We use Mora (2013) model to argue that the multiplier might not be negatively correlated with capital mobility in these countries. In other words, the potency of fiscal policy could be reduced by the fact that capital mobility in Latin American countries tends to be quite low. The empirical findings support the hypothesis. We have found that the size of the fiscal multiplier tends to increase or (at least) to remain relatively stable, around 1.40, in these countries in the short run; however, in the long run, this effect tends to decrease significantly to 0.34. These results also suggest that fiscal policy is still very potent, but given their economic structure differences, could be larger if Latin American countries become more financially integrated with the rest of the world.
Book Synopsis The Economic Effects of Fiscal Consolidation with Debt Feedback by : Mr.Marcello M. Estevão
Download or read book The Economic Effects of Fiscal Consolidation with Debt Feedback written by Mr.Marcello M. Estevão and published by International Monetary Fund. This book was released on 2013-05-31 with total page 51 pages. Available in PDF, EPUB and Kindle. Book excerpt: The past several years of recession and slow recovery have raised much interest on the effect of fiscal stimulus on economic activity, even as high public debts in many countries would call for fiscal consolidation. To evaluate the delicate balance between stimulus and consolidation requires measuring the size of fiscal multipliers, which often depends on having quarterly data so that exogenous fiscal policy shocks can be identified. We estimate fiscal multipliers using a novel methodology for identifying fiscal shocks within a structural vector autoregressive approach using annual data while controling for debt feedback effects. The estimation focuses on regions with scarce quarterly data (mostly low-income countries), and uses results for advanced economies, emerging market countries, and other broad groupings for which alternative estimates are available to validate the methodology. Differently from advanced and emerging market economies, fiscal consolidation in low-income countries has only a small temporary negative effect on growth while raising medium-term output. Shifting the composition of public spending toward capital expenditure further supports long-run growth.
Book Synopsis Growth Forecast Errors and Fiscal Multipliers by : Mr.Olivier J. Blanchard
Download or read book Growth Forecast Errors and Fiscal Multipliers written by Mr.Olivier J. Blanchard and published by International Monetary Fund. This book was released on 2013-01-03 with total page 43 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected, with the relation being particularly strong, both statistically and economically, early in the crisis. A natural interpretation is that fiscal multipliers were substantially higher than implicitly assumed by forecasters. The weaker relation in more recent years may reflect in part learning by forecasters and in part smaller multipliers than in the early years of the crisis.
Book Synopsis The Effectiveness of Fiscal Policy in Stimulating Economic Activity by : Richard Hemming
Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.
Book Synopsis Fiscal Multipliers and the State of the Economy by : Ms.Anja Baum
Download or read book Fiscal Multipliers and the State of the Economy written by Ms.Anja Baum and published by International Monetary Fund. This book was released on 2012-12-05 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: Only a few empirical studies have analyzed the relationship between fiscal multipliers and the underlying state of the economy. This paper investigates this link on a country-by-country basis for the G7 economies (excluding Italy). Our results show that fiscal multipliers differ across countries, calling for a tailored use of fiscal policy. Moreover, the position in the business cycle affects the impact of fiscal policy on output: on average, government spending, and revenue multipliers tend to be larger in downturns than in expansions. This asymmetry has implications for the choice between an upfront fiscal adjustment versus a more gradual approach.
Book Synopsis Better Spending for Better Lives by : Alejandro Izquierdo
Download or read book Better Spending for Better Lives written by Alejandro Izquierdo and published by . This book was released on 2018-08-31 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt:
Book Synopsis Getting Into the Nitty-Gritty of Fiscal Multipliers: Small Details, Big Impacts by : José Federico Geli
Download or read book Getting Into the Nitty-Gritty of Fiscal Multipliers: Small Details, Big Impacts written by José Federico Geli and published by International Monetary Fund. This book was released on 2023-02-10 with total page 50 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the remarkable progress the literature has made throughout the past years in studying fiscal multipliers, estimates still vary considerably across studies. Partly, estimates differ because of context-specific variables that affect multipliers, but also because of the lack of a standardized framework to calculate and report them, making comparisons among studies hard to make. In this paper, we use a large panel of countries to study how some important methodological details affect the empirical estimates. Focusing on emerging economies, we show how slight changes in the filtering approach of fiscal forecast errors or the accumulation procedure of responses can significantly impact estimates. We emphasize that one of the most important features of estimating multipliers is the endogenous dynamic responses of fiscal variables to fiscal shocks, and therefore we argue against reporting multipliers as simply the output response to exogenous fiscal innovations. Although our baseline results are in line with the previous studies, our standardized framework allow us to make fairer comparisons of multiplier estimates across budgetary items and country income groups.
Book Synopsis Estimating Fiscal Multipliers Under Alternative Exchange Rate Regimes: The Case of Bolivia by : Tannous Kass-Hanna
Download or read book Estimating Fiscal Multipliers Under Alternative Exchange Rate Regimes: The Case of Bolivia written by Tannous Kass-Hanna and published by International Monetary Fund. This book was released on 2023-11-17 with total page 41 pages. Available in PDF, EPUB and Kindle. Book excerpt: Empirical (employing the Blanchard-Perotti framework) and modeling (using a country-specific DSGE model) approaches are used to estimate fiscal multipliers by policy instrument for Bolivia, to evaluate possible adjustments in a fiscal consolidation strategy. Multipliers are also estimated using alternative assumptions about the accompanying exchange rate regime and capital mobility, highlighting the importance of the policy mix in determining the impact of fiscal adjustments. The study exploits the DSGE modeling structure to assess this interaction of fiscal and monetary policy in a lower middle-income country under different exchange rate regimes. It finds that expenditure multipliers fall into the range of 1/3 to 2/3, with public investment multipliers slightly higher than government consumption multipliers over longer horizons, and multipliers generally higher under a peg than inflation targeting. Tax multipliers are shown to be about half of expenditure multipliers.
Book Synopsis Global Waves of Debt by : M. Ayhan Kose
Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Book Synopsis Latin American Entrepreneurs by : Daniel Lederman
Download or read book Latin American Entrepreneurs written by Daniel Lederman and published by World Bank Publications. This book was released on 2014 with total page 172 pages. Available in PDF, EPUB and Kindle. Book excerpt: Entrepreneurship -- manifested in the entry of new firms or products into new markets, or substantial improvements in technological capacity or process innovation by incumbent firms -- is widely considered to be an important ingredient for long term economic development. This report argues that entrepreneurship is also a source of employment generation, export growth, and resilience during economic downturns. Although the conventional wisdom suggests that Latin American and Caribbean countries underperform relative to China and other emerging markets in terms of its entrepreneurial dynamism, t.
