Economic Consequences of Quasi-fiscal Deficits
Author: Carlos Alfredo Rodríguez
Publisher:
Published: 1993
Total Pages: 56
ISBN-13:
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Central Banks Quasi-Fiscal Policies and Inflation
Author: Mr.Seok Gil Park
Publisher: International Monetary Fund
Published: 2012-01-01
Total Pages: 35
ISBN-13: 1463981007
DOWNLOAD EBOOKAlthough central banks have recently taken unconventional policy actions to try to shore up macroeconomic and financial stability, little theory is available to assess the consequences of such measures. This paper offers a theoretical model with which such policies can be analyzed. In particular, the paper shows that in the absence of the fiscal authorities' full backing of the central bank's balance sheet, strange things can happen. For instance, an exit from quantitative easing could be inflationary and central banks cannot successfully unwind inflated balance sheets. Therefore, the fiscal authorities' full backing of the monetary authorities' quasi-fiscal operations is a pre-condition for effective monetary policy.
The Economic Consequences of Government Deficits
Author: L.H. Meyer
Publisher: Springer Science & Business Media
Published: 2012-12-06
Total Pages: 243
ISBN-13: 9400966849
DOWNLOAD EBOOKOn October 29 and 30, 1982, the Center for the Study of American Business and the Institute for Banking and Financial Markets at Washington "The Economic Consequences of University cosponsored a conference on Government Deficits. " This was the sixth annual Economic Policy Con ference sponsored by the Center, and the first it has cosponsored with the Institute. This book contains the papers and comments delivered at that conference. Recent and prospective large federal deficits have prompted a thorough reconsideration of the political sources and economic consequences of government deficits. The papers in Part I focus on the implications of deficits for monetary growth and inflation, and the papers in Part II consider the effect of deficits on interest rates and capital formation. The papers in Part III deal with the political sources and remedies for the explosive growth in government spending and increased reliance on deficits. The papers in Part I by Alan S. Blinder, Professor of Economics at Princeton University, and Preston J. Miller, Assistant Vice President and Research Advisor at the Federal Reserve Bank of Minneapolis, discuss the relation between monetary growth and deficits and present evidence on the of deficits on inflation and output. A deficit is said to be monetized effects vii viii THE ECONOMIC CONSEQUENCES OF GOVERNMENT DEFICITS when the Federal Reserve purchases bonds to aid the Treasury in financing the deficit.
Estimating Quasi-fiscal Deficits in a Consistency Framework
Author: Philippe Le Houerou
Publisher:
Published: 1993
Total Pages: 36
ISBN-13:
DOWNLOAD EBOOKTo assess fully the effect of adjustment programs and development strategies, it is essential that the fiscal deficit include quasi- fiscal deficits-- the losses of public financial institutions such as the central bank. A flow- of- funds format may be the best approach for doing so, as this case shows.
Quasi-Fiscal Operations of Public Financial Institutions
Author: Mr.George A. Mackenzie
Publisher: International Monetary Fund
Published: 1996-10-24
Total Pages: 58
ISBN-13: 9781557755834
DOWNLOAD EBOOKCentral banks and other public financial institutions act as agents of fiscal policy in many countries. Their "quasi-fiscal" operations and activities can affect the overall public sector balance without affecting the budget deficit as conventionally measured, may also have important allocative effects, and increase the effective size of the public sector. This paper analyzes the macroeconomic and financial effects of such quasi-fiscal activities, as well as the taxes, subsidies, and other expenditures that such activities introduce outside the budget. Measurement and accounting issues are addressed, and policy recommendations are offered.
Measurement of Fiscal Impact
Author: International Monetary Fund
Publisher: International Monetary Fund
Published: 1988-06-16
Total Pages: 84
ISBN-13: 9781557750167
DOWNLOAD EBOOKThis paper describes methodological issues pertaining to measurement of fiscal impact. The fiscal deficit is, under any circumstances, a crude tool for assessing the impact of fiscal policy on the economy. This paper also analyzes various ways in which the conventional definition of the fiscal deficit is affected by high rates of inflation. It has shown that, as the rate of inflation rises, the picture emerging from the conventional measure may, under certain circumstances, become somewhat blurred since the conventional measure may magnify the size of the fiscal adjustment that a country need. In fact, the size of the debt service that compensates bondholders for the reduction in the real value of their assets arising from inflation should be made explicit so as to indicate that part of the deficit whose impact depends mainly on portfolio decisions regarding the public's demand for government bonds, and on the potential effects of these bonds on the monetary and liquidity conditions of the economy.
How to Measure the Fiscal Deficit
Author: Mr.Mario I. Bléjer
Publisher: International Monetary Fund
Published: 1991-09-15
Total Pages: 404
ISBN-13: 9781557751928
DOWNLOAD EBOOKFiscal policy seeks to equilibrate the public sector's financing needs with the private sector's demand for investment and a sustainable balance of payments. Correct measurement of the public sector's net use of resources is therefore an important prerequisite for managing the macroeconomy. This volume, edited by Mario I. Blejer and Adrienne Cheasty, is organized around four issues: the adequacy of summary measures of the fiscal deficit, conventional and adjusted deficits, coverage (size) of the public sector, and the public sector's intertemporal budget constraint.
Tax Smoothing in a Financially Repressed Economy
Author: Mr.Paul Cashin
Publisher: International Monetary Fund
Published: 1998-08-01
Total Pages: 44
ISBN-13: 1451854463
DOWNLOAD EBOOKIndia has a long history of running fiscal deficits. Two broad considerations motivate a government to run a deficit: tax smoothing and tax tilting. This paper tests a version of Barro’s tax-smoothing model, using Indian data for the period 1951-52 to 1996-97. The empirical results indicate that the central government of India has tax-smoothed, while the regional governments of India have not. The paper also finds evidence of tax tilting, reflected in financial repression, which has led to the accumulation of excessive public liabilities.
Fiscal Deficits and Current Account Deficits
Author: Mr.Michael Kumhof
Publisher: International Monetary Fund
Published: 2009-10-01
Total Pages: 37
ISBN-13: 1451873840
DOWNLOAD EBOOKThe effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they significantly raise the world real interest rate. Second, they cause a short run current account deterioration equal to around 50 percent of the fiscal deficit deterioration. Third, the longer run current account deterioration equals almost 75 percent for a large economy such as the United States, and almost 100 percent for a small open economy.
Analytical and Methodological Issues in the Measurement of Fiscal Deficits
Author: Mario I. Bléjer
Publisher: International Monetary Fund
Published: 1990-11
Total Pages: 70
ISBN-13:
DOWNLOAD EBOOKThe IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
