Effects of Fiscal Consolidation in the Czech Republic
Klyuev, Vladimir; Snudden, Stephen
Year: 2011 Volume: 61 Issue: 4 Pages: 306-326
Abstract: This article uses the IMF’s Global Integrated Monetary and Fiscal Model (GIMF) to assess the impact of fiscal consolidation on the Czech economy. Its contribution is threefold. First, it provides estimates of dynamic fiscal multipliers for a variety of fiscal instruments (tax and expenditure), consolidation durations, assumptions about credibility, and monetary policy responses. Second, the article evaluates the impact on the economy of tightening measures envisaged in the 2011 budget. Third, the article considers alternative packages for consolidation beyond 2011 to achieve the government’s balanced budget target by 2016 and identifies which forms of adjustment are more “growth-friendly.”
JEL classification: E62, H60
Keywords: fiscal multipliers; fiscal consolidation; fiscal policy; general equilibrium models
RePEc: http://ideas.repec.org/a/fau/fauart/v61y2011i4p306-326.html
 Attachment [PDF]  Data [ZIP] |  Print  Recommend to others |
