Modeling Optimal Fiscal Consolidation Paths in a Selection of European Countries

Released on by Mr.Daniel Kanda
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  • Modeling Optimal Fiscal Consolidation Paths in a Selection of European Countries Book Detail

  • Author : Mr.Daniel Kanda
  • Release Date : 2011-07-01
  • Publisher : International Monetary Fund
  • Genre : Business & Economics
  • Pages : 24
  • ISBN 13 : 1462302203
  • File Size : 56,56 MB
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Modeling Optimal Fiscal Consolidation Paths in a Selection of European Countries by Mr.Daniel Kanda PDF Summary

Book Description: For a number of countries - Italy, Netherlands, the United Kingdom, Germany, Ireland, and France - this paper develops an inter-temporal model that elicits the implied country-preferences over balancing the conflicting objectives of fiscal consolidation and reduction of economic slack. The model suggests that some front-loading of adjustment is desirable, although the extent would vary by country preferences. It also finds that proposed consolidations may prove to be stronger than acceptable, especially if somewhat larger than anticipated fiscal multipliers lead to a sizeable economic deceleration.

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Kingdom of Netherlands

Kingdom of Netherlands

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Important issues of the Netherlands are discussed. Openness to trade has benefited the Netherlands before the crisis and has supported the recent recovery proce