- Additional Authors
- Description
- 43 p.; 21 x 29.7cm.
- Summary
- This paper looks at various aspects of fiscal consolidation in 18 OECD economies. The prospects for fiscal consolidation depend upon the problems the country may face with its debt stock, the political will to deal with these problems and on the costs of consolidation. The analysis is based on a series of simulations using the National Institute Global Econometric Model, NiGEM. The properties of the NiGEM model are discussed first. Although the model is estimated it has a strong role for expectations and can be run under different modes of expectations formation. This allows a decomposition of the factors that might affect the results. Temporary and permanent shifts in fiscal policy are assessed as well as the potential impact of fiscal consolidation plans under different monetary and fiscal feedback rules and different modes of expectations formation. If fiscal policy is expected to be tightened in the future, then long rates will fall now, and perhaps even induce a short-term expansion of output. Expansionary fiscal contractions of this sort are rare, however, and none are anticipated with the programmes that are investigated.
- Series Statement
- OECD Economics Department Working Papers, 1815-1973 ; no.933
- Uniform Title
- OECD Economics Department Working Papers, no.933.
- Subject
- Economics
- LCCN
- 10.1787/5k9fdf6bs78r-en
- OCLC
- oecd-lib-000975
- Author
Barrell, Ray.
- Title
Fiscal Consolidation: Part 2. Fiscal Multipliers and Fiscal Consolidations [electronic resource] / Ray Barrell, Dawn Holland and Ian Hurst
- Imprint
Paris : OECD Publishing, 2012.
- Series
OECD Economics Department Working Papers, 1815-1973 ; no.933
OECD Economics Department Working Papers, 1815-1973 ; no.933.
- Connect to:
- Indexed Term
Economics
- Added Author
Holland, Dawn.
Hurst, Ian.
- Other Standard Identifier
10.1787/5k9fdf6bs78r-en doi