fiscal policy

In thinking through the fiscal policy options and their implications, it might be useful to compare a few hypothetical, fanciful scenarios.

In a sense, medium-term fiscal policy is all about saving for a rainy day.

If fiscal policy as a left- wing economic take -off , then monetary policy is no doubt that it is the right - wing.

I disagree with the conclusion but agree with one of the premises: that discretionary fiscal policy was a disappointment during the crisis.

A more enlightened Chinese currency policy is at least as important a component of that co-operation as greater probity in US fiscal policy.

Some colleagues on the Bank's independent Monetary Policy Committee thought the governor should keep his nose out of fiscal policy.

But now, after more than three decades in the wilderness, Keynesian-style fiscal policy seems to be staging a comeback.

In an ideal world, the pain of a structural-reform programme would be cushioned by an expansionary fiscal policy.

But he doesn't favor more stimulus now, saying 'lags in monetary and fiscal policy actions' should be allowed to 'work through the system. '

The Demand Siders are brilliant, but they write as if changing fiscal policy were as easy as adjusting the knob on your stove.

So the Obama team believes that for the next 18 months or so, it would be a mistake to let deficit concerns steer government fiscal policy.

Fiscal policy makers should not allow the current account gap to widen during periods of solid national economic growth, he said.

The end of the stability pact will be a victory rather than a defeat if it leads to new ways of monitoring and controlling fiscal policy.

It cannot be stated too strongly: US fiscal policy is not exhausted (nor is monetary policy, for that matter).

Fiscal policy has made a comeback, not because its flaws have disappeared, but because the alternatives don't seem to be working.

Other economists believe that fiscal policy should not be used for economic stabilization under any circumstances.

Central-bank 'independence is lost when monetary policy is tied to the wagon of fiscal policy and then loses control over prices, ' he said.

Fiscal policy could have been tighter. But the result would have been a depression.

And the economic recession and years of deficit fiscal policy makes the United States total public debt has accumulated.

Strong growth is largely due to its liquefied natural gas (LNG) projects and an expansionary fiscal policy focused on infrastructure.

Fiscal policy is an important means of macroeconomics and will become effective instrument of balancing urban and rural development.

'It calls into question the short-term focus on fiscal policy and the wisdom of achieving fiscal targets at specific times, ' he said.

To retain counter-cyclical fiscal policy as an option in the next recession, the debt ratio will have to fall.

Conventional wisdom holds that the eurozone problem is the adoption of a common monetary policy without a common fiscal policy.

For the moment, fiscal policy seems unlikely to deliver the two things America needs most from it: near-term stimulus and long-term reform.

Mr King broke a longstanding silence on fiscal policy to warn the British government against adding to a fast-growing national debt.

The stability and growth pact is now too full of holes to be a binding constraint on fiscal policy.

But because current monetary and fiscal policy is so far outside the bounds of historical norms, it's hard for anyone to be sure.

Its off-budget funds may give it scope to run a counter-cyclical fiscal policy for a while.

The leaders decided they would move to form a pact among at least 23 of the members to tighten rules on national fiscal policy.

Until Thursday, government statements had included words promising a "moderately loose monetary policy" and a "proactive fiscal policy. "

Asian financial crisis, China began to implement a proactive fiscal policy and prudent monetary policy.

Once you filter out the noise, getting fiscal policy right in a more intelligent sense is not even being discussed.

Monetarists argue fiscal policy is always unnecessary, since monetary expansion does the trick.

Is it surprising that the country thinks fiscal policy is out of control, even to the point of looking warily at extended jobless benefits?

Front-loaders point to the need to maintain credible fiscal policy, which is hard to gain and easy to lose.

fiscal policy response has so far focused on supporting the financial sector and enterprises, with rather limited support to households.

The best way to mitigate that scenario would be for the U. K. government to tighten fiscal policy instead.

"An expansive fiscal policy should be considered in micro control measures and China is also capable of doing so, " he told the newspaper.

Pushing ahead with another stimulus will only make it harder to tighten fiscal policy down the road to keep inflation in check.

It would be better if fiscal policy were carrying some of the load of economic stimulus.

Fearing higher inflation, monetary and fiscal policy would be tighter than they needed to be.

The main drivers of the dollar's weakness, say economists, are the twin pillars of economic intervention: monetary and fiscal policy.

If all countries rejoined, the old system would restart with a more appropriate, binding fiscal policy rule.

But central banks will also be conscious of the need to offset the effects of fiscal policy, which is likely to be contractionary.

How Fiscal Policy Influences Aggregate Demand Fiscal policy influences saving, investment, and growth in the long run.

Thanks to the tight fiscal policy of Mr Berlusconi's finance minister, Giulio Tremonti, Italy has so far escaped the markets' wrath.

Fiscal policy-taxation and public spending-is being kept on a tight rein by an iron chancellor.

This expansionary fiscal policy has been a bigger growth driver than monetary easing over the past three years, in our view.

That is bound to bring more fiscal-policy control from Brussels, turning the euro zone into a more politically integrated club.

Moderation in the short term and discipline in the long term should be the watchwords for fiscal policy.

The Cato Institute, a libertarian think-tank, gave him a "D" grade for fiscal policy.

If Barack Obama and Congress cannot meet them, the result could be budgetary disarray and a damaging tightening of fiscal policy.

The suggestion that stabilizing the domestic economy is the domain of fiscal policy becomes a strong mandate .

Mr. Anderson's current worry: Much of the economic recovery resulted from low interest rates and an accommodative fiscal policy.

If fiscal policy is also ruled out, the only option would be foreign demand.

Yet without much looser fiscal policy, it is hard to see what will drag them from deep recession.

Fiscal policy adjusts government spending and taxes; monetary policy adjusts the amount of money in circulation.

Charles was stripped of his power as Parliament took control of fiscal policy and placed the army and navy under their supervision.

It has worked well in the UK but would be the wrong instrument of fiscal policy management in the euro zone.

The downgrade could intensify concerns about the risks that remain for US fiscal policy and for the economy as a whole.

But turning strong public finances into a pro-growth fiscal policy won't be straightforward.

Europe-wide regulation of banks interferes with national sovereignty less than European control over fiscal policy.

Tax Multipliers - Numbers that describe the overall change in output created by a change in taxes due to fiscal policy change.

Without the help of an active fiscal policy from Congress, the last thing America can afford is another shock.

Now turn to the yet more debated question of fiscal policy.

Fiscal policy works with a lag because of the long political process that governs changes in spending and taxes.

There's not as much heated disagreement over financial rules as there is over fiscal policy, but there is no consensus either.

A day earlier Obama had called Lagarde to talk about fiscal policy. They agreed that the world economy needs further steps to boost growth.

In its report, the IMF said striking the right balance on fiscal policy represented the main challenge facing US economic officials.

It is enough of a victory that fiscal policy is no longer pro-cyclical.

Other things being equal, tighter fiscal policy suggests loose monetary policy for longer and a weaker currency.

Jean-Claude Trichet, president of the European Central Bank, has said bluntly that discretionary fiscal policy should be "avoided" .

For the good of the world and for its own good, America needs to show some leadership and better adhere to sound monetary and fiscal policy.

Research interests: macroeconomic analysis, flow-of-funds analysis, fiscal policy.

The IMF says policy actions must be "concerted, " "rapid, " "credible, " and "swift, " especially on fiscal policy.

In China, the government's active fiscal policy and prudent monetary policy let the country get out of the crisis firstly.

This led to a renewed emphasis on fiscal policy, but on the tax side rather than the spending side, as Keynesians tend to focus.

Both domestic and foreign practices show that, it's an significant tool to use fiscal policy protecting agricultural ecology environment.

On fiscal policy and economic recovery, Americans could learn something from the German example.

At a more mundane level, each country's array of export subsidies and duties and import barriers is a separate fiscal policy.

If Germany tightens fiscal policy, France and Italy risk their spreads rising if they do not follow.

The key policy issue today in the aftermath of the "Great Recession" is the exit strategy for monetary and fiscal policy.

Germany is being called a bad global citizen for tightening fiscal policy despite its external surplus and unstressed borrowing capacity.

With fiscal policy constrained, the IMF recommends that monetary policy remain loose and prepare to be looser.

The deep recession and current fiscal policy have produced a large deficit and no sign the flow of red ink will cease any time soon.

It would be risky, even counterproductive, to tighten fiscal policy too quickly when the economy is weak.

A proactive fiscal policy and moderate monetary policy is expected to adversely on the macro-fundamentals must form a hedge.

Fiscal policy, rather than expansionary, is already on track to be sharply contractionary.

fiscal policy as an important macro-control, leveraging one of the people concerned in recent years.

fiscal policy as an important macro-control, leveraging one of the people concerned in recent years.

The appropriate relaxation of fiscal policy, strengthening of monetary policy Adjustment and international collaboration.

"This is the biggest economic crisis since the war, " said Kaoru Yosano, minister for economic and fiscal policy.

Moves to save global capitalism, for instance, change nominally domestic matters, like bank capital adequacy or fiscal policy.

We must adhere to the policy of expanding domestic demand and continue to implement a proactive fiscal policy and a prudent monetary policy.

Once again, much of this debate is over use of macroeconomic policy tools: should one tighten or loosen fiscal policy in a recession?

In 2001, the US got away with an unusually short recession helped by aggressive interest rate cuts and an expansionary fiscal policy.

His dismissal leaves a vacuum in economic and fiscal policy that will not be filled by Mr Putin's return to the Kremlin.

For the sake of maintaining fiscal policy as an anti-recession tool, a commitment to fiscal control is needed right now.

But the drag from fiscal policy is going to be far smaller in the US.

The pressure to tighten fiscal policy in some parts of the euro area will make it hard for the ECB even to consider raising interest rates.

But with monetary policy muffled, Mr Obama will bear more of the responsibility for fighting recession by way of fiscal policy.

We will work hard to improve our ability to carry out all the specific measures required of the proactive fiscal policy.

By contrast, fiscal policy can be targeted on investments in education, technology and infrastructure.

The difficulties inherent in this challenge explain why Keynesian fiscal policy has been out of fashion for decades.

This does not mean that fiscal policy in the eurozone should not gradually become more centralised.

This year's Greek crisis exposed the inadequacies of the euro, a single currency without a joint economic or fiscal policy.

The objective selection for fiscal policy of supporting agriculture determines the fiscal resources' future direction and using efficiency.

Believing in the power of the Fed, economists mostly stopped researching the use of fiscal policy to fight recessions or depressions.

Monetary and fiscal policy are sometimes used to offset those shifts and stabilize the economy.

Fiscal policy can say, "No you don't. If you try to save, we will dissave on your behalf via budget deficits. "

With fiscal policy set on kamikaze tightening and conventional monetary policy almost exhausted, that leaves "quantitative easing" .

"[W]e will continue with a responsible fiscal policy [and] inflation targets, " he insisted.

It is hard to say how successful monetary and fiscal policy will be in avoiding a deep downturn.

China complains, and it has a point, that US fiscal policy must change to help rebalance the world economy.

It is not the case that the countries in difficulties had irresponsible fiscal policy before the crisis.

At some point, with most big economies adopting the same fiscal policy, global bond markets are going to start choking .

The results reveal that current fiscal policy definitely will result in intergenerational and gender-specific fiscal burden imbalances.

Fiscal policy needs a framework with moral authority, flexible when appropriate, rigid when necessary and independently monitored.

Second, a tightening of fiscal policy must be offset by a loosening of monetary policy.

If the equilibrium rate of unemployment has risen, scope for remedial monetary and fiscal policy is diminished.

With respect to both monetary and fiscal policy, tightening in the cyclical upturns never matched the vigour of the easing in the downturns.

Fiscal policy is turning contractionary as America's stimulus expires and much of Europe implements austerity measures.

Premier Wen Jiabao assurance that China would stick to an appropriately easy monetary stance and proactive fiscal policy lent support.

During the recent turbulence in other Southeast Asian financial markets you saw how solid our finances and fiscal policy are today.

Mr Osborne could have softened the effect of a future interest-rate hike by loosening fiscal policy a jot.

To survive, the currency may come to acquire a level of fiscal-policy co-ordination that will appal the British.

An accommodative monetary policy and an aggressive fiscal policy is as much as markets should now hope for.

As Willem Buiter of the London School of Economics puts it, only fiscal conservatives can use counter-cyclical fiscal policy well.

In officialese, monetary policy has shifted from "proactive" to "prudent" , while fiscal policy remains "proactive" .

Ultimately, the spreads are reliant on the fiscal policy and domestic politics of each member state.

Fiscal policy has the smallest international spill-overs, and should receive the least attention.

Fiscal policy has to be expanded but, owing to the vast differences between these economies, packages will differ.

Fiscal policy is also extraordinarily loose, as the deterioration in the public finances testifies.

What he leaves unmentioned is the role of fiscal policy in defusing bubbles, indeed in preventing their emergence in the first place.

Investments will be targeted at infrastructure, social welfare and other key sectors as part of an "active" fiscal policy, Xinhua said.

Under the direction of the other members of the eurozone, the EMF would dictate fiscal policy to the sinner.

Consider the three ingredients for recession: a credit crunch, tighter fiscal policy and a dearth of confidence.

You could make a parallel argument for fiscal policy.

Many economists in Germany say it damaged the ECB's credibility and independence by moving the central bank into the realm of fiscal policy.

Before these latest comments, however, Beijing had generally been most critical of US fiscal policy, urging Washington to spend less.

Technicalities aside, the most plausible explanation for the steep yield curve is the interaction of monetary and fiscal policy.

If QE cannot spur private demand on its own, combining it with looser fiscal policy may help.

To illustrate this he takes the reader on a journey through more than two centuries of monetary and fiscal policy and banking.

But dizzy current-account deficits, wild foreign-currency borrowing and reckless fiscal policy are leaving a horrible hangover for some.

The fiscal policy of tax rebates failed to achieve a significant impact on consumer spending.

This means they have plenty of scope to ease fiscal policy to support domestic demand so as to offset some of the fall in exports.

Fiscal policy, favoured by the left, requires political choices about levels of taxation and public spending.

As one externalization of fiscal policy, the crowding out effect has its mechanisms of formation and representative characters.

Fourth, while a fiscal policy stimulus has already started, its scope and size have been relatively modest.

Public Investment, The Rate Of Return, And Optimal Fiscal Policy.

Republicans are pressuring the Fed to stop; House Speaker John Boehner said Thursday it is enabling bad fiscal policy.

If the cause of an unstable macroeconomic situation is monetary or fiscal policy, that is where reforms must be made.

Years of rapid growth have allowed the richer countries in the region the room to use monetary and fiscal policy to contain the crisis.

A statement issued after the meeting also said authorities would maintain a proactive fiscal policy and prudent monetary policy in 2013.

Reconsidering fiscal policy is not all that is needed.

As the students found, premature tightening of fiscal policy could strangle the recovery in its cradle and worsen future deficits.

The legislators and treasuries ordinarily responsible for fiscal policy failed, so central banks had to step in.

However, advanced by Martin Feldstein, neglecting the impact of fiscal policy is a serious limitation in the monetary economics.

Another solution is to tighten fiscal policy. This would cool domestic demand without the need for a big rise in interest rates.

In monetary policy most agree that the goal is low and stable inflation; there is no such consensus about the aims of fiscal policy.

And governments used fiscal policy in a counter-cyclical, discretionary manner.

Several argued against rapid fiscal contraction, since loose fiscal policy had fewer knock-on effects than loose monetary policy.

European governments are tightening fiscal policy well before their economies have recovered output lost in the recession.

The anti-Keynesians retort that US fiscal policy is already on an unsustainable path.

We expect China to pursue a more proactive fiscal policy in the second half, with greater support for the country's export and SME sectors.

The biggest deficiency in the euro, the absence of a common fiscal policy, is well known.

China again this year to implement expansionary fiscal policy to deal with the economic recession.

Germany is best-placed to use fiscal policy to boost demand, because its government bonds are prized by investors fleeing risky assets.

By wading into the debt debate, Bernanke is touching two hot buttons at once -- fiscal policy and divisive politics.

That would mean fiscal policy contributing less to China's growth in the year ahead than it did in the year just passed.

A consensus is forming that policymakers should tighten fiscal policy, sharply, in countries with large fiscal deficits.

This month the BOJ will unveil a radical measure for "strengthening the foundations for economic growth" that borders on fiscal policy.

'The Japanese people should welcome our neighbor, China's growth, ' said Kaoru Yosano, Minister of State For Economy and Fiscal Policy.

The deal also threatens to tighten fiscal policy further in 2012, when the recovery is still struggling to establish itself.

Finally, every country must consider what fiscal policy can do to help.

What specific developments in international finance have influenced the conduct of monetary and fiscal policy?

Reckless intransigence was not enough for Republicans to dictate fiscal policy; they also needed a majority in the House of Representatives.

But it relied on fine-tuning consumption through fiscal policy, supplemented by interest rate changes.

Mr Mantega now accepts that expansionary fiscal policy has helped drive up interest rates and the currency, something he previously denied.

Already, American and German officials are downplaying their disagreements over fiscal policy.

It is conventional wisdom among economists that monetary policy is precise, predictable and effective, while fiscal policy is the opposite.

Gordon Brown has run out of room; Ireland is having to tighten fiscal policy.

Fiscal policy was discarded as an instrument of macroeconomic policy.

Fiscal policy in particular will get far more attention from theorists and econometricians than it has in recent memory.

One cannot build a credible long-term fiscal policy by starting off in the wrong direction, with larger rather than smaller deficits.

To be sure, the idea that fiscal policy was impotent never entirely disappeared.

Businesses are basing their investment decisions on the size of their current order books, not their guesses of fiscal policy in 2015.

Adam Smith has made way for John Maynard Keynes as fiscal policy has been rehabilitated as a tool of economic management.

The forth chapter was implementation effect assessment of fiscal policy of balancing urban and rural development.

They use a baseline model that assumes a given growth rate and an unsustainable fiscal policy.

The economics and fiscal policy minister said that other potential suppliers were in the reckoning.

But, as Mr Posen argues of Japan, "there is no good evidence . . . of strong Ricardian offsets to fiscal policy. "

Monetary and fiscal policy can stabilize aggregate demand and, thereby, production and employment.

From the tight monetary policy and sound fiscal policy to jointly promote economic restructuring and development.

Could the inconsistencies of fiscal policy and the disagreements between creditors and debtors eventually trip the whole system up?

Their economies have little spare capacity and no reason to keep monetary or fiscal policy at emergency settings.

The Obama administration now wants to shift from monetary policy to fiscal policy and provide direct stimulus of demand.

How Fiscal Policy Influences Aggregate Demand In the short run, fiscal policy primarily affects the aggregate demand.

A Summary of "Advanced Seminar on Active Fiscal Policy and its Sustainability"

How fiscal policy works with flexible exchange rates is a little more complicated.

It is self-defeating, because attempts by every member country to tighten fiscal policy at once will impoverish all, including creditors.

But sometimes they must cross the blurry line between monetary and fiscal policy, between separation and co-ordination.

However, fiscal policy is likely to tighten as several fiscal measures expire, knocking some 2% off GDP from January onwards.

It is absurd for China's leaders to complain about China's consequent (and unnecessary) vulnerability to US fiscal policy.

Heavier regulation will weigh on the business sector and governments will be forced to tighten fiscal policy.

The combination of tight fiscal policy and low interest ratesisusually a recipe for a weaker currency.

More generally, the economy is being boosted by the extraordinary stimulus it is getting from monetary and fiscal policy.

Through the active fiscal policy and looser monetary policy, expand the domestic demand.

Since Americans borrow in their own currency, the US authorities can, it seems, loosen monetary and fiscal policy at will.

To stimulate consumption and investment, can use monetary and fiscal policy, fiscal policy should mainly rely on the.

This year, robust fiscal policy and tight monetary policy will be carried out to achieve the overall goal of macro-control.

The administration accepted the principle that fiscal policy should promote recovery, not thwart it.

Monetary policy cannot counteract this, since all three are pegged to the euro. And fiscal policy offers no respite.

Such timing would of course make fiscal policy an aggravator of instability , not a reducer .

Fiscal policy will be tightened over the coming months as tax breaks expire and public spending is cut.

As Britain's tax on bank bonuses shows, fiscal policy in the rich world risks being driven by rising public fury at bankers and bail-outs.

In many developed countries, fiscal policy is being tightened to repair strained balance sheets.

The first is that just because something is time-honoured moral wisdom does not make it workable capitalist fiscal policy.

If the Fed's current policies fail, fiscal policy can be employed to boost demand.

Yet this, again, raises general questions about fiscal policy, not ones limited to the financial sector.

Quantitative easing erases the line between monetary and fiscal policy altogether.

China's fairly primitive financial infrastructure makes it difficult to fine-tune credit through monetary and fiscal policy.

If there is a chance that monetary policy might fail to rescue the slumping US economy, what about fiscal policy?

Most economists across a broad spectrum would likely agree to three basic propositions about fiscal policy.

'Significant fiscal-policy intervention from here seems, I think most people would agree, pretty unlikely, ' Mr. Phillips said.

China has taken on a new policy approach translated by some as 'loose fiscal policy and tight monetary policy'.

Central banks typically cut interest rates and the currency weakens when governments tighten fiscal policy.

We mainly apply the discretionary fiscal policy to balance the macroeconomic cyclical fluctuations for a long time.

Third, fiscal policy should be aimed at absorbing temporary economic shocks.

If monetary policy seems indifferent to the economy, then fiscal policy is downright truculent.

Tighter fiscal policy in emerging economies, for instance, could lessen the chance of overheating.

Adjusting fiscal policy does not mean simply doling out more stimulus.

China may rely more on fiscal policy than monetary measures to support growth, Morgan Stanley economists said.

The objectives of monetary policy are the same as those of fiscal policy.

The effects of the stimulus are wearing off, so fiscal policy now veers towards contraction.

Contrary to conventional wisdom, fiscal policy is not exhausted.

They could co-ordinate fiscal policy in a constructive way that goes beyond simply accusing each other of running excessive deficits.

As a result, all efforts at "normalising" monetary and fiscal policy fails, until the private sector's balance-sheet adjustment is over.

But India's recent acceleration largely reflects a cyclical boom, thanks to loose monetary and fiscal policy.

Existing fiscal policy initiatives are already stimulative.

Fiscal policy everywhere has to be guided by the imperatives of growth.

Thus, looser fiscal policy globally will increase the challenge for monetary policy to cut inflation.

It enables a country to avoid implementing an overly restrictive fiscal policy, which may further hamper growth and lead to social tensions.

Fiscal policy is contracting as governments rush to announce austerity programmes.

The first is HM Treasury which is responsible for the overall economic framework and for fiscal policy in particular.

Mr Rogoff cites the low value of official short-term rates, the "unusually lax stance of fiscal policy" and global imbalances.

The measure was meant to ensure consequences for bad fiscal policy and protect the eurozone's broader fiscal order.

Fiscal policy is now contractionary in both the eurozone and the UK.

The responsible policy was to use fiscal policy.