Only a few empirical studies have analyzed the relationship between fiscal multipliers and underlying state of economy.This paper investigates this link on country-bycountry basis for G7 economies (excluding Italy).Our results show that differ across countries, calling tailored use policy.Moreover, position in business cycle affects impact policy output: average, government spending, revenue tend to be larger downturns than expansions.This asymmetry has implications choice an upfront...

 Addressing crisis legacies may be the most promising avenue for boosting productivity growth in near term, particularly continental Europe, where scars from global financial remain greater than other advanced economies.Stimulating demand, including by addressing remaining weak corporate and bank balance sheets, reducing policy uncertainty, investment on high-return infrastructure projects, would induce private risk-taking improve capital allocation.This could turn around feedback...

This paper examines options for fiscal policy frameworks in resource rich developing countries.In doing so, it reassesses the role of permanent income hypothesis, especially low-income countries seeking to tackle infrastructure and development needs by scaling up growth-enhancing expenditure.The concludes that framework: should reflect country-specific factors, which may change over time; promote sustainability policy; be sufficiently flexible enable expenditure, countries; consider...

Only a few empirical studies have analyzed the relationship between fiscal multipliers and underlying state of economy. This paper investigates this link on country-by-country basis for G7 economies (excluding Italy). Our results show that differ across countries, calling tailored use policy. Moreover, position in business cycle affects impact policy output: average, government spending, revenue tend to be larger downturns than expansions. asymmetry has implications choice an upfront...

We study the impact of fluctuations in global oil prices on domestic inflation using an unbalanced panel 72 advanced and developing economies over period from 1970 to 2015. find that a 10 percent increase increases, average, by about 0.4 percentage point impact, with effect vanishing after two years being similar between economies. also is asymmetric, positive price shocks having larger than negative ones. The shocks, however, has declined time due large part better conduct monetary policy....

The permanent income hypothesis implies that frictionless open economies with exhaustible natural resources should save abroad most of their resource windfalls and, therefore, feature current account surpluses. Resource rich developing countries (RRDCs), on the other hand, face substantial development needs and tight external borrowing constraints. By relaxing these constraints providing a key financing source for public investment, might then be associated deficits or at least low In this...

We examine the stability and strength of relationship between exchange rates trade over time using three alternative approaches, mitigating endogeneity relation.We find that both rate pass-through price elasticity volumes are largely stable time.Economic slack financial conditions affect relationship, but there is limited evidence participation in global value chains has significantly changed rate-trade time.

This paper presents a model of fiscal dominance with borrowing constraints and provides new evidence for large number Sub-Saharan African countries on the relative importance monetary determinants inflation. Based different empirical tests, results show that half twenty-two SSA were characterised in 1980–2005 by lack clear anti-inflationary policies. The other sample was either fiscal-dominant regime, weak or no response primary surpluses to public debt, consistent adoption monetary-dominant regime.

This paper analyses inflation dynamics in the Central African Economic and Monetary Community (CEMAC) using a constructed dataset for country-specific commodity price indices panel cointegrated vector autoregressive models. Imported shocks are significant explaining region. In most CEMAC countries, largest effect of global food fuel prices occurs after four or five quarters non-core then decays substantially over time. Second-round effects only Cameroon to lesser extent Republic Congo.

The paper examines the consequences of fiscal consolidation in times persistently low growth and high unemployment by estimating medium-term multipliers during protracted recessions (PR) a sample 17 OECD countries.Based on Jorda's (2005) local projection methodology, we find that cumulative related to output, employment at five-year horizons are significantly above one PR episodes.These results suggest plans reduce public debt burdens should proceed gradually if economic activity remains...

This paper reassesses the empirical relationship between ageing and total factor productivity (TFP) growth at country level. We contribute to literature by (i) extending sample coverage 2014; (ii) adding a new identification strategy instrument labour force both in advanced (AEs) emerging market economies (EMEs); (iii) refining test with focus on age structure of employed workers. Our econometric evidence indicates that has played significant role slowing down TFP for AEs EMEs over recent...

The paper uses survey data to analyze whether financial market expectations on government budget deficits changed in France, Germany, Italy, and the United Kingdom during period of Stability Growth Pact (SGP). Our findings indicate that accuracy expert deficit forecasts increased France. Convergence between European Commission's experts' also Kingdom, particularly after SGP's reform 2005. Yet, convergence markets' those French, German, Italian national fiscal authorities seems not have...

We examine the stability and strength of relationship between exchange rates trade over time using three alternative approaches, mitigating endogeneity relation. find that both rate pass-through price elasticity volumes are largely stable time. Economic slack financial conditions affect relationship, but there is limited evidence participation in global value chains has significantly changed rate-trade