"When it rains, it pours": fiscal policy, credit constraints and business cycles in emerging and developed economies

2020 ◽  
Author(s):  
Krastina Dzhambova
Keyword(s):  
Fiscal Policy ◽  
Business Cycles ◽  
Credit Constraints ◽  
Developed Economies

FISCAL POLICY OVER THE POSTWAR BUSINESS CYCLES: COMMENT

1968 ◽  
Vol 21 (4) ◽  
pp. 479-480
Author(s):  
D. A. L. AULD ◽  
G. BRENNAN
Keyword(s):  
Fiscal Policy ◽  
Business Cycles

Fiscal Policy and Business Cycles

1943 ◽  
Vol 9 (1) ◽  
pp. 77
Author(s):  
D. A. MacGibbon ◽  
Alvin H. Hansen
Keyword(s):  
Fiscal Policy ◽  
Business Cycles

scholarly journals International Co-movements and Business Cycles Synchronization Among Advanced Economies: A SPBVAR Evidence

2019 ◽  
Vol 8 (4) ◽  
pp. 38
Author(s):  
Antonio Pacifico
Keyword(s):  
Business Cycles ◽  
Financial Stability ◽  
Unobserved Heterogeneity ◽  
Model Misspecification ◽  
Developed Economies ◽  
Country Level ◽  
Institutional Issues ◽  
Advanced Economies ◽  
Dynamic Panels ◽  
Structural Panel

This paper provides new empirical insights in order to give a relevant contribution to the more recent literature on international transmission of shocks and on business cycles synchronization across developed economies, with a particular emphasis in the most recent recession and post-crisis consolidation. Interdependence, commonality and heterogeneity in macroeconomic-financial linkages are also identified in order to depict the perplexed nature of modern economies. A time-varying Structural Panel Bayesian Vector Autoregression (SPBVAR) model is developed to deal with model misspecification and unobserved heterogeneity problems when studying multicountry dynamic panels. The results argue for significant synchronization behind a relevant consolidation without delay. Additionally, consolidation is needed to underpin confidence in fiscal solvency at the country level and prevent adverse international externalities. My evidence calls for more integrated macroprudential and financial stability policies. It also shows that, when formulating policies or forecasting, additional transmission channels and economic-institutional issues through which fiscal contractions influence the dynamics of the GDP growth need to be accounted for in muticountry setups.

Do political parties foster business cycles? An examination of developed economies

2013 ◽  
Vol 41 (1) ◽  
pp. 212-226 ◽  
Author(s):  
Koyin Chang ◽  
Yoonbai Kim ◽  
Marc Tomljanovich ◽  
Yung-Hsiang Ying
Keyword(s):  
Political Parties ◽  
Business Cycles ◽  
Developed Economies

Fiscal Policy and Business Cycles.

1941 ◽  
Vol 56 (4) ◽  
pp. 621
Author(s):  
Edward E. Lewis ◽  
Alvin H. Hansen ◽  
James Arthur Estey
Keyword(s):  
Fiscal Policy ◽  
Business Cycles

scholarly journals The Synchronization of Financial and Business Cycles in Saudi Arabia

2018 ◽  
Vol 5 (4) ◽  
pp. 32 ◽  
Author(s):  
Osama El-Baz
Keyword(s):  
Economic Growth ◽  
Saudi Arabia ◽  
Fiscal Policy ◽  
Business Cycles ◽  
Early Warning Systems ◽  
Fiscal Rules ◽  
Economic Stability ◽  
Systemic Risks ◽  
Financial Credit ◽  
Financial Cycles

Financial cycles have become vividly tracked and analyzed by regulatory authorities to avoid the buildup of excessive systemic risks in the financial system that could hamper economic growth. However, fiscal policy usually pays an exclusive attention to business cycles; which might leave fiscal outcomes vulnerable to financial sector dynamics. We investigated financial and business cycles in Saudi Arabia over the period (1970Q1- 2016Q4). The results of the BBQ cycle dating algorithm revealed that the duration of financial upturns (downturns) are longer than that for economic expansions (contractions) in means, also both the amplitude and the slope for upturns (downturns) are higher than those for expansions (contractions) in means. Moreover, financial cycle episodes are more frequent than business cycle episodes. Finally, we found empirical evidence that financial (credit) conditions are crucial for economic stability. Fiscal policy can play an important role in fostering economic growth going forward through the implementation of a countercyclical policy that allows for the accumulation of fiscal buffers and releasing them during periods of an economic slowdown, the setup of early warning systems for business and financial cycles, and the introduction of fiscal rules to limit the scope for a procyclical fiscal stance.

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