Non-Keynesian effects of fiscal contraction in new member states

Arbeitspapier

Many economists are convinced that longer-term benefits from fiscal consolidation are in a trade-off with short-term deceleration in output growth. However, more recent research suggests that curbing fiscal imbalances contributes to faster growth already in the short term. This paper is about such non-Keynesian effects. Section two systematizes theoretical explanations. Section three reviews previous empirical research. Section four uses panel estimation techniques to examine the consequences of fiscal consolidation in New Member States. This analysis provides evidence that in those countries fiscal consolidation contributed substantially to the acceleration of output growth even in the short term. However, the exact channels through which non-Keynesian effects occurred could not be unambiguously identified in the paper. Section five takes the new step of a qualitative analysis of the outcomes of strong fiscal adjustments in the countries under consideration. That analysis shows that their experiences were quite similar to those of developed countries.

Angaben zum Objekt

• Sprache: Englisch

Verweise und Beziehungen

• Erschienen in: Series: ECB Working Paper ; No. 519

Klassifikation und Themen

• Klassifikation: Wirtschaft ; Fiscal Policy ; Studies of Particular Policy Episodes ; Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
• Thema: fiscal consolidation ; new Member States ; non-Keynesian effects ; Haushaltskonsolidierung ; Finanzpolitik ; Wirkungsanalyse ; EU-Mitgliedschaft

Beteiligte, Orts- und Zeitangaben

• Ereignis: Geistige Schöpfung
• (wer): Rzonca, Andrzej ; Cizkowicz, Piotr
• Ereignis: Veröffentlichung
• (wer): European Central Bank (ECB)
• (wo): Frankfurt a. M.
• (wann): 2005

Weitere Informationen

• Handle: http://hdl.handle.net/10419/152953
• Letzte Aktualisierung: 10.03.2025, 11:41 MEZ