Short-Term Macroeconomic Effects of the Fiscal Stimulus Measures in Austria

2010 ◽  
Author(s):  
Serguei Kaniovski ◽  
Margit Schratzenstaller
Keyword(s):  
Short Term ◽  
Fiscal Stimulus ◽  
Macroeconomic Effects

A Decade After the 2009 Global Recession: Macroeconomic Developments

2021 ◽  
pp. 2150011
Author(s):  
Wee Chian Koh ◽  
Shu Yu
Keyword(s):  
Low Income ◽  
Developing Economies ◽  
Emerging Market ◽  
Bank Lending ◽  
Low Income Countries ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Cross Border ◽  
Global Recession ◽  
The Impact

Emerging market and developing economies (EMDEs) weathered the 2009 global recession relatively well. However, the impact of the global recession varied across economies. EMDEs with stronger pre-crisis fundamentals — such as large foreign exchange reserves, sound fiscal positions, and low inflation — suffered milder growth slowdowns, in part due to their greater capacity to engage in monetary and fiscal stimulus. Low-income countries were also resilient, as foreign aid and inflows of remittances remained relatively stable. In contrast, EMDEs that were heavily dependent on short-term capital flows — such as portfolio investment and cross-border bank lending — fared less well, especially those in Europe and Central Asia. A key lesson for EMDEs is the need to strengthen macroeconomic frameworks and create policy space to prepare for future global downturns.

scholarly journals Causas, consecuencias y regulación del capital golondrina: el caso de Costa Rica

1969 ◽  
Vol 4 (2) ◽  
pp. 7-20
Author(s):  
José Fulvio Sandoval Vásquez
Keyword(s):  
Economic Theory ◽  
Costa Rica ◽  
Exchange Rates ◽  
Interest Rates ◽  
Capital Flows ◽  
Short Term ◽  
Regulatory Measures ◽  
Macroeconomic Effects

El siguiente artículo analiza el ingreso de capital financiero de corto plazo (capital golondrina) en el país a partir del segundo semestre de 2012. Interesa revisar lo que establece la teoría económica sobre su origen, causas y consecuencias, así como las medidas regulatorias que pueden tomar las autoridades económicas para limitar estos flujos y contrarrestar sus efectos macroeconómicos. Finalmente, a la luz de estos desarrollos se revisa la propuesta del Poder Ejecutivo tendente a desestimular el arribo de estos capitales.ABSTRACT In this paper we analyze the entry of short-term financial capitals to the country in the second half of 2012. What economic theory says regarding its origin, causes and consequences is going to be reviewed, as well as the regulatory measures that policymakers can take to limit their flows and counteract their macroeconomic effects. Finally, taking into account these developments, an executive proposal aiming to discourage the arrival of these capitals is analyzed. KEYWORDS: CAPITAL FLOWS, IMPOSSIBLE TRINITY, INTEREST RATES, EXCHANGE RATES, INFLATION, INTERNATIONAL MONETARY RESERVES.

scholarly journals Japan

2017 ◽  
Vol 17 (242) ◽  
Author(s):  
Keyword(s):  
Economic Conditions ◽  
Medium Term ◽  
Short Term ◽  
Potential Growth ◽  
Fiscal Stimulus ◽  
Reform Agenda ◽  
Policy Frameworks ◽  
Global Demand ◽  
Key Drivers ◽  
Low Levels

Abenomics has improved economic conditions and engendered structural reforms but has not yet achieved a durable exit from deflation. The economy has expanded at a pace above potential the last five consecutive quarters, and unemployment has fallen to record low levels. Short-term fiscal stimulus and rising global demand have been key drivers. However, inflation, public debt sustainability, and growth objectives remain to be secured. Risks to the outlook are tilted to the downside, particularly in the medium term. The current favorable economic environment is an opportunity to accelerate reforms. A comprehensive and mutually reinforcing package of accelerated structural reform, coordinated demand and income polices, strengthened policy frameworks, and enhanced financial sector policies is needed. The reform agenda should prioritize structural measures aimed at facilitating reflation (particularly labor market reforms to boost wages), followed by policies to lift potential growth.

Europe of the Future and the Future of Europe: The Innovation/Austerity Choice

2015 ◽  
Vol 29 (2) ◽  
pp. 83-88 ◽  
Author(s):  
Henry Etzkowitz ◽  
Alex Etzkowitz
Keyword(s):  
Technology Development ◽  
Innovation Policy ◽  
Advanced Technology ◽  
Economic Downturn ◽  
The European Union ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Knowledge Based Economy ◽  
The Future ◽  
Union Curve

Although innovation policy usually follows the business cycle, it is both desirable and possible to reverse this trend. Perhaps the most telling commentary on contemporary Europe is the silence that met the presentation, at the recent European Parliament Innovation Conference, of the Chinese R&D spending curve passing the European Union curve in 2013. This intersection is a symptom of a deeper divergence in response to economic downturn between societies committed to innovation and those committed to austerity. One response to downturn is to double down on fiscal stimulus to increase spending in the short term and to create jobs, exemplified by the early Obama Administration's relatively modest stimulus package. Another response is to pull back, decrease government spending or, at best, hold it constant, as in the UK. The optimal response, as exemplified by China's continuing infusion of resources into higher education and advanced technology development, is for government to pursue fiscal expansion targeted at innovation, providing short-term economic stimulus while accelerating the transformation from a manufacturing-based economy to a knowledge-based economy.

scholarly journals Algunas hipótesis relacionadas con la crisis 1994-95 en México

1996 ◽  
Author(s):  
Francisco Gil Diaz ◽  
Agustin Carstens
Keyword(s):  
Exchange Rate ◽  
Central Bank ◽  
Economic Crisis ◽  
Cumulative Effect ◽  
Bank Credit ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Domestic Savings ◽  
Mexican Peso ◽  
Available Information

A large number of hypotheses have been offered to explain the causes and circumstances of the December 1994 devaluation of the Mexican peso and the economic crisis that ensued. Some of them are based on ideas and data handled loosely and/or with no perspective, and frequently arrive at the exact opposite conclusion as that which would have been supported by the available information. This paper deals with some of the most often repeated of these conjectures and confronts them with what actually happened. It begins by reviewing the situation of the Mexican economy prior to the devaluation and then surveys, as possible causes for the crisis, the following: an overvalued currency, lax central bank credit, misleading and unequal information, politically motivated fiscal stimulus, insufficient domestic savings, and what is known in the literature as the “over-borrowing syndrome”. It concludes that despite possible improvements in the way the Mexican economy was managed before the crisis, the real causes are to be found on the combination of a semi-fixed exchange rate, the explosive availability of international short- term capital, and the cumulative, effect of the repeated political shocks that affected the Mexican scene during 1994.

scholarly journals The Outbreak of COVID-19 and Islamic Stock Market Responses in Indonesia

The Winners ◽  
2021 ◽  
Vol 22 (2) ◽  
Author(s):  
Rianda Rizky Permata ◽  
Budi Purwanto ◽  
Wita Juwita Ermawati
Keyword(s):  
United States ◽  
Influencing Factors ◽  
Stock Prices ◽  
Trading Volume ◽  
The United States ◽  
Test Methods ◽  
Short Term ◽  
Cross Sectional ◽  
Fiscal Stimulus ◽  
Market Responses

The research intended to analyze the overreaction phenomenon in Islamic stocks due to COVID-19 as well as the influencing factors by utilizing different test methods and cross-sectional regression. The research employed data on the daily stock prices from August 9th, 2019 to October 26th, 2020 on the Jakarta Islamic Index (JII) and the stocks utilized during the period of events. The sample of this research utilized seven events related to COVID-19. The findings of this research reveals that the announcement of COVID-19 transmission and lockdown (Event 2) causes overreaction in winner stocks. Meanwhile, the overreaction phenomenon of loser stock is due to the announcement of the United States fiscal stimulus (Event 5) and the announcement of the PSBB (Event 6). Furthermore, the new normal announcement event (Event 7) triggers overreaction in the winner and loser stocks. The results indicate that Islamic stocks continue to have several transactions which are prohibited by the Fatwa DSN MUI in the short term. In this case, the variables that impact the overreaction phenomenon are shown to be substantially and negatively linked to leverage and market capitalization, while trading volume significantly influences and has a positive correlation with the overreaction phenomenon.

Politics clouds Central Europe’s short-term outlook

2019 ◽  
Keyword(s):  
Family Policy ◽  
Population Decline ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Content Type ◽  
Court Of Justice ◽  
European Court ◽  
The Supreme Court ◽  
Polish Government ◽  
The Eu

Significance Last year ended dramatically, with the European Court of Justice (ECJ) ordering the Polish government to suspend its reform of the Supreme Court, and the European Commission announcing that subsidies to major Czech agricultural conglomerate Agrofert, owned by Prime Minister Andrej Babis, would be suspended until allegations of conflict of interest were resolved. Tensions between the EU and Central Europe (CE) are expected to escalate ahead of the European Parliament (EP) elections due on May 23-26. Impacts The slowdown’s severity will vary among countries, with robust fundamentals, cheap borrowing and lower government debt all positives. A hit to private consumption from higher inflation could dampen the popularity ratings of leading parties absent additional fiscal stimulus. In Hungary, Fidesz may launch a ‘pro-family’ policy to win back popularity; reversing population decline was an election campaign pledge.

scholarly journals Fiscal Stimulus and Consumer Debt

2019 ◽  
Vol 101 (4) ◽  
pp. 728-741 ◽  
Author(s):  
Yuliya Demyanyk ◽  
Elena Loutskina ◽  
Daniel Murphy
Keyword(s):  
Adverse Effect ◽  
Open Economy ◽  
Department Of Defense ◽  
Defense Spending ◽  
Detailed Data ◽  
Consumer Debt ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Fiscal Multiplier ◽  
Economic Output

In the aftermath of the consumer debt–induced recession, policymakers have questioned whether fiscal stimulus is effective during periods of high consumer indebtedness. This study empirically investigates this question. Using detailed data on Department of Defense spending for the 2007–2009 period, we document that the open-economy relative fiscal multiplier is higher in geographies with higher consumer debt. The results suggest that in the short term (2007–2009), fiscal policy can mitigate the adverse effect of consumer (over)leverage on real economic output during a recession. We then exploit detailed microdata to show that both heterogeneous marginal propensities to consume and slack-driven economic mechanisms contribute to the debt-dependent multiplier.

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