Concept
Fiscal conservatism
Related publications (12)
Fiscal Policy, Relative Prices and Net Exports in a Currency Union
This paper studies the effects of fiscal policy on net exports, the terms of trade and expenditure switching. Using data on government spending and consumption taxes for twelve euro area countries over 1996 to 2018, it shows that fiscal austerity shocks im ...
2020Deep Habits, Price Rigidities and the Consumption Response to Government Spending
This paper inspects the 'deep' habits mechanism originally used by Ravn, Schmitt-Grohé and Uribe (2006) to generate the positive comovement of public and private consumption observed in many VAR studies. In their set-up, the price-elasticity of demand is p ...
Ghent University Faculty of Economics and Business Administration Working Paper 2010/6412011Optimal Monetary and Fiscal Policy in the EMU: Does Fiscal Policy Coordination matter?
I develop and analyze a DSGE model of a currency union to revise the question of how to conduct monetary and fiscal policy in countries that share the same currency. In contrast with the previous literature which assumes coordination, this paper analyzes t ...
Center for Fiscal Policy Working Paper Series2009Euro 2008 in Geneva: A city’s experience organizing a large-scale event. “Examining “friendly” fan and hooligan behaviour in the Fan Zone
Vincent Kaufmann, Luca Giovanni Pattaroni, Pascal Pierre André Viot
Large-scale events like the 2008 UEFA European Football Championship (commonly referred to as the Euro) put a great deal of strain on the cities that host them, forcing them to find a provisional balance between the pursuit of everyday activities and the a ...
2009The impact of fiscal-monetary policy interactions on government size and macroeconomic performance
This paper analyzes the relationship between inflation, output and government size by reexamining the time inconsistency of optimal monetary and fiscal policies in a general equilibrium model with staggered timing structure for the acquisition of nominal m ...
2009Is U.S. Fiscal Policy Optimal?
We find and compare two simple fiscal rules. The first is a theoretical rule that approximates well Ramsey-optimal fiscal policy in a DSGE model calibrated to the U.S. economy over the period 1955:1 to 2007:3. The second is an empirical rule that approxima ...
Center for Fiscal Policy Working Paper Series2008Optimal Fiscal Policy in a Monetary Union
We study optimal fiscal policy in a monetary union where monetary policy is decided by an independent central bank. We consider a two-country model with trade in goods and assets, augmented with sticky prices, labor income taxes and stochastic government c ...
Center for Fiscal Policy Working Paper Series2007Monetary-Fiscal Interactions with a Conservative Central Bank
Abstract We study macroeconomic stabilization when monetary and fiscal policies interact via their effects on output and inflation and the monetary authority is more conservative than the fiscal. We find that monetary- fiscal interactions result in poor ma ...
2006Interactions of Commitment and Discretion in Monetary and Fiscal Policies
We consider monetary-fiscal interactions when the monetary authority is more conservative than the fiscal. With both policies discretionary, (1) Nash equilibrium yields lower output and higher price than the ideal points of both authorities, (2) of the two ...
2003Symbiosis of Monetary and Fiscal Policies in a Monetary Union
We consider the interaction between the monetary policy in a monetary union, and separate fiscal policies of the member countries. We use a Barro-Gordon type model extended to many countries and fiscal policies. Each country's fiscal policies inflict exter ...
Elsevier2003