Arbeitspapier
Uncertain fiscal consolidations
The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax- or spending-based - are uncertain. We find that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt, and expectations over the likelihood and composition of fiscal consolidations all matter in determining the extent to which a given consolidation is expansionary or successful in stabilizing government debt. We argue that the conditions that could render fiscal consolidation efforts expansionary are unlikely to apply in the current economic environment.
- Language
-
Englisch
- Bibliographic citation
-
Series: Bank of Canada Working Paper ; No. 2013-26
- Classification
-
Wirtschaft
National Budget, Deficit, and Debt: General
Fiscal Policy
Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
Fiscal Policies and Behavior of Economic Agents: General
- Subject
-
Fiscal policy
Uncertainty and monetary policy
Economic models
- Event
-
Geistige Schöpfung
- (who)
-
Bi, Huixin
Leeper, Eric M.
Leith, Campbell
- Event
-
Veröffentlichung
- (who)
-
Bank of Canada
- (where)
-
Ottawa
- (when)
-
2013
- DOI
-
doi:10.34989/swp-2013-26
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Bi, Huixin
- Leeper, Eric M.
- Leith, Campbell
- Bank of Canada
Time of origin
- 2013
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