Fiscal policy Research Papers - Academia.edu (original) (raw)

Proceedings of the Workshop organised by the Directorate-General for Economic and Financial Affairs in Brussels on 17 January 2008. The post-2007 global financial and economic crisis has generated considerable political pressure in the EU, and beyond, to loosen the reigns of fiscal policy. Stabilisation is given priority over adjustment. In the medium and long term, however, one of the main

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- Public Finance, Fiscal policy, Economic Crisis, Member States

The main thrust of this research was to explore the revenue and expenditure nexus on Nigeria from 1981 to 2016. It tried to uncover the expenditure hypothesis that Nigeria's government had adopted in her budgeting. Time series data obtained from the statistical bulletin of the Central Bank of Nigeria (CBN) was used for the study, and it was subjected to unit-root tests. The results from Augmented Dickey Fuller (ADF) and Philip-Perron tests indicated that the variables only became stationary after differencing once. Accordingly, Johansen cointegration test was conducted and results revealed a longrun relationship between the variables. An Error Correction Model (ECM) was carried out to tie the shortrun dynamics with longrun equilibrium. The ECM exhibited the right sign and significant in both models. The results equally provided empirical evidence that government expenditure has significant effect on revenue in Nigeria as there was a negative and significant relationship between them at various lags when expenditure was made the dependent variable. A positive and significant relationship existed between the variables at various lags when revenue was made the dependent variable. The results of Granger causality tests showed that unidirectional causality runs from expenditure to revenue in Nigeria and this confirmed the adoption of Spend-Tax Hypothesis in Nigeria. Based on these findings, it was recommended that the government should lay more emphases on revenue than expenditure to remove/reduce budget deficits; should explore other viable avenues other than oil to increase its revenue; emphases should be placed on capital expenditure than on recurrent expenditure as this will help in reducing the over bearing expenditure profile of the country and removal of fiscal imbalances.

- by Dr. Ben M . Ogbonna
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- Economics, Tax Law, Political Science, Taxation

This paper aims to compare the pattern of own-tax collection and tax buoyancy of high and low-income states of India from 2001-02 to 2016-17. The study observed that the tax-to-GSDP ratio decreased in the high-income states. While it observed an increase in low-income states except for Rajasthan. The lower-income states observed the buoyant tax revenue collections. Whereas, the high-income states were not able to maintain the buoyant taxes. Thus, the states with lower tax buoyancies need to strengthen their administrative structure to increase their tax coverage.

- by Ankit K U M A R Suryawanshi
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- Federalism, State And Local Public Finance, Fiscal policy, Direct Tax
- by Hüseyin Şen
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- Tax Policy, Fiscal policy, Monetary Policy, Development Macroeconomics

Since fiscal rules are not a panacea, and all of the economic, political, and financial forces that impact on sovereign creditworthiness cannot possibly be controlled, chances are that some governments will encounter debt-servicing difficulties when they least expect it. Certainly, to the extent that nations adhere to market-friendly policies that foster investor confidence and prosperity, and generate the budgetary revenues, export earnings, and capital inflows necessary to keep servicing debt obligations, their fiscal resilience will be enhanced. Sound liability-management practices can also make a major contribution to creditworthiness, because when the public debt exhibits a risk-averse currency, interest rate, and maturity structure, it should be able to withstand the temporary harm done by a natural disaster, or a sudden deterioration in financial market conditions or the terms of foreign trade. And last, but not least, prudential regulations, and sensible monetary and exchange rate policies, can make a major difference in terms of minimizing contingent liabilities arising out of the banking system, state-owned enterprises, and other risk pockets in the economy, thereby preventing a destabilizing jump in the public debt. These are the lessons from painful experience.

This Statistical Brief is an ongoing effort of NALAS’ Fiscal Decentralisation Task Force to provide policy–makers and analysts with timely, accurate, relevant, reliable and comparable data on local government finance in South–East Europe... more

- by John Pastor Ansah
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- Economic Development, Modeling and Simulation, Public sector, Fiscal policy

Background Despite the increasing evidence that income inequality causes reductions in life expectancy in developed countries, this relationship has not been explored in the United Kingdom, where local income data are not routinely available. We have surmounted this problem by employing an ecological design which applies national income data to local mortality and occupational data.

- by Alex Scott-Samuel
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- Public Health, Fiscal policy, Mortality, Income Distribution

We quantify the effects on poverty and income distribution in Ecuador of bilateral trade liberalization with the US and a budget-neutral value added tax increase which seeks to compensate tariff revenue losses. We stress the study of fiscal policies that the government could tap in order to compensate for tariff revenue loss. This is a very important issue for Ecuador because this country adopted the US dollar as its currency in 2000, forgiving the use of important policy instruments. To study these issues we combine a reduced-form micro household income and occupational choice model (using 2005/6 data from the Ecuadorian LSMS) with a standard single-country computable general equilibrium model (employing a 2004 SAM). We follow a sequential approach that simulates the full distributional impact of trade and tax policies. We find that the impact of these policy changes on extreme poverty and income distribution is small but positive.

- by Ricardo Arguello
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- Tax Policy, Fiscal policy, Income Distribution, Policy Change

The zero limiting capital tax result is also discussed by Arrow and Kurz (1970, pp. 191}203) in the context of a neoclassical growth model with inelastic labor supply and productive public expenditures. 0165-1889/99/$ -see front matter... more

- by Jang-Ting Guo
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- Economic Theory, Fiscal policy, Applied Economics, Profitability

Abstract. In this paper we study the relationship of fiscal policy and economic performance of some core countries in the EU. Our aim is to find out whether public deficit and public debt have consequences for real variables in the... more

- by Willi Semmler
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- Economics, European integration, Economic Growth, Fiscal policy

Sono solo numeri… Volendo usare qualche dato sintetico, la ricchezza globale generata dal pianeta è stimata in 87,8 trilioni 1 di dollari. Si badi bene, questo è solo l'ammontare stimato del Prodotto Interno Lordo (PIL) dei paesi. La massa di denaro esistente sul pianeta ammonta a cifre di un ordine di grandezza superiore, al punto che si è dovuto ricorrere al quadrilione (1.000 trilioni) per stimarlo. Considerando però come la ricchezza si distribuisce, si riscontra che, al vertice della piramide, si stimano 168.030 individui con un patrimonio netto superiore ai 50 milioni, 55.920 superiore ai 100 e 4.830 ai 500. Tolti questi 228.780 personaggi, cosa resta al resto della popolazione mondiale che si aggira sui 7 miliardi?

This article analyzes the Italian government's response to the sovereign debt crisis. Given the severity of the fiscal crisis affecting Italy, this article provides insights about the crisis's implication for public administration in such a politically sensitive environment where drastic and far-reaching measures had to be taken by the government. Drawing on the historical institutionalist approach, the impact of the crisis is not considered in isolation but in the context of the historical trajectory that has shaped the government's capacity to respond. To assess the crisis's implications for public administration, the empirical analysis focuses on public employment as an area that is especially exposed to fiscal restraint. The findings reveal that the current crisis has been managed with straight cutback management, as public administration has been considered by policy makers just as a source of public expenditure to be squeezed rather than as a provider of public services in need of modernization so as to sustain economic growth. The global crisis that started in 2007-2008 had significant implications for the fiscal position of Organisation for Economic Cooperation and Development (OECD) nations (Posner & Blondal, 2012). As the global crisis mutated from a problem affecting the private economy to a sovereign debt problem, public spending cutbacks came

- by Fabrizio Di Mascio and +1
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- Italian Politics, Historical Institutionalism, Policy learning, New Institutionalism

There is a new growing interest in the development and the use of integrated land use and transport planning models in France. In this paper, we describe the steps of a current project which aims to integrate UrbanSim, a flexible land use model, and METROPOLIS, a dynamic traffic model, and to apply this integrated model to Paris region. We shortly present the two models and the common architecture, then we describe the fastidious but crucial step of collecting input data and calibration data for the study area. Paris region is one of the most important metropolises in the world : 12 000 km2, 11 millions inhabitants and 5 millions jobs.

- by Nathalie Picard
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- Real Estate, Spatial Analysis, Urban Planning, Intelligent Transport System
- by Bartholomew Paudyn
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- Finance, Economic Sociology, Economics, International Relations

The Italian economy is characterized by a considerable amount of public debt and low growth for over a decade. This is a key issue both at a theoretical and policy level. The relationship between public debt and economic growth is widely discussed in the economic literature, since in many countries spending is rising faster than income, leading to widening budget deficits and higher levels of debt. However, the empirical literature generally highlighted the heterogeneity of the debt-growth nexus. This paper summarizes four working papers written by the author in the period from 2007 to 2014, where the structural problems of the Italian economy are identified, and the critical aspects related to Italy high debt and its low growth is emphasized. The contribution aims at discussing possible policy actions to address the Italian structural problems in the current situation. In particular, the paper underlines the importance of a long-term strategy for growth, to boost productivity and the potential growth of the Italian economy. In addition, it focuses on fiscal policy emphasizing the strategic role both of spending optimization and of tax collections through, for instance, digitizing the tax collection process in order to contribute to the long-term sustainability of sovereign Italian debt.

- by Daniele Schilirò
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- Economic Growth, Fiscal policy, Public Debt
- by Tim Congdon
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- Economics, Fiscal policy, Monetary Policy, Empirical evidence

La aprobación de la Ley 26.425, mediante la cuál se eliminó el régimen de capitalización y se unificó el sistema previsional, abre la posibilidad de repensar las características específicas de la intervención estatal en la materia.
Y al hacerlo surgen nuevos y viejos dilemas, algunos de los cuales no han formado parte de los debates recientes.
Esta nota, continuación de la publicada en Entrelíneas de la Política Económica N°15, se concentra en los desafíos que se enfrentan en materia de Seguridad Social como consecuencia de la unificación del sistema previsional.

- by Rafael A. Selva
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- Fiscal policy, Social Security, Prevision Social

This paper reviews the budget allocations of the first year of the General System of Royalties (SGR). The results show positive elements in the distribution and territorial equity in the new system. However, there are some aspects of project approval that delay implementation and do not necessarily ensure that those selected are the most appropriate. Furthermore, there is no evidence that the system involves an analysis of the sustainability of investments and there is certain fiscal laziness observed in some departments, especially those who did not receive royalties before. Finally, the study of Cesar shows that in some cases the royalties are still investing in infrastructure projects without a clear impact and whose sustainability is not assured. Although this type of investment was one of the motivations that led to the creation of the SGR, these continue to dominate the allocation of resources.

- by Joaquin A Urrego and +1
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- Natural Resources, Colombia, Fiscal policy

We investigate the effects of fiscal transparency and political polarization on the prevalence of electoral cycles in fiscal balance. The recent political economy literature on electoral cycles identifies such cycles mainly in weak and recent democracies. In contrast, we show, conditioning on a new index of institutional fiscal transparency, that electoral cycles in fiscal balance are a feature also of advanced industrialized economies. Using a sample of nineteen OECD countries in the 1990's, we identify a persistent pattern of electoral cycles in low(er) transparency countries, while no such cycles can be observed in high(er) transparency countries. Furthermore, we find, in accordance with recent theory, that electoral cycles are larger in more politically polarized countries.

- by James Alt
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- Political Economy, Fiscal policy, Budget Deficit, OECD countries

Η απότομη διακοπή πολλών οικονομιών δραστηριοτήτων τον Μάρτιο του 2020 για να αποτραπεί η εξάπλωση της πανδημίας που προκάλεσε ο Convid-19 οδήγησε σε μια ύφεση μεγαλύτερη ακόμη κι εκείνης του 2008. Όλες σχεδόν οι χώρες του κόσμου παρενέβησαν αποφασιστικά και σχετικά έγκαιρα έλαβαν μέτρα άμβλυνσης των συνεπειών που η αξία τους μέχρι τις 27 Μαρτίου ανερχόταν σε 7 τρισ. δολ. (CNN, 2020). Το ποσό ωστόσο όσο μεγάλο κι αν φαίνεται υπολείπεται των περιστάσεων μιας και δεν κατάφερε να αποτρέψει την μεγαλύτερη ύφεση από την εποχή του Δεύτερου Παγκόσμιου Πολέμου, για τις περισσότερες χώρες του κόσμου. Τα μέτρα που ανακοινώθηκαν στρέφονταν κυρίως σε τρεις κατευθύνσεις: Πρώτο, άμεσες εισοδηματικές ενισχύσεις, δεύτερο, παρατάσεις στην εξόφληση φορολογικών και ασφαλιστικών υποχρεώσεων προς το δημόσιο και σπανίως προς τις τράπεζες και, τρίτο, παροχή εγγυήσεων για δάνεια κι ευνοϊκότεροι όροι δανεισμού.
Η πείρα του 2008 έδειξε ότι η πλημμυρίδα νέων δανείων μπορεί βραχυπρόθεσμα να εγγυήθηκε την αποπληρωμή προηγούμενων δανείων, μακροπρόθεσμα ωστόσο οδήγησε στην υπερχρέωση και αύξησε την αστάθεια του συστήματος. Μείωσε την ικανότητα ακόμη και κυρίαρχων κρατών να αντεπεξέρχονται σε εσωτερικά και εξωτερικά οικονομικά σοκ. Χαρακτηριστική περίπτωση είναι οι χώρες του ευρωπαϊκού Νότου. Από την άλλη, όπου εφαρμόστηκαν δημοσιονομικά μέτρα με την μορφή άμεσων ενισχύσεων επέτρεψαν την ταχύτερη έξοδο από την κρίση. Χαρακτηριστική περίπτωση είναι η Κίνα και σε μικρότερο βαθμό οι ΗΠΑ.
Μέχρι στιγμής, η προτίμηση που δείχνουν τα ευρωπαϊκά όργανα και πολλές κυβερνήσεις σε δάνεια και παρατάσεις στην εξόφληση φόρων και ασφαλιστικών
εισφορών, αφιερώνοντας ελάχιστους πόρους σε άμεσες εισοδηματικές ενισχύσεις, δεν προδιαγράφουν μηδενικές απώλειες για τους μισθωτούς, τους αυτοαπασχολούμενους και τις μικρομεσαίες επιχειρήσεις. Όλες οι εκτιμήσεις δείχνουν πώς η άρση των μέτρων περιορισμού της κυκλοφορίας θα συνοδευτεί από αυξημένη ανεργία για μεγάλο χρονικό διάστημα, καθήλωση μισθών και λαϊκών εισοδημάτων και περαιτέρω μονοπώληση της αγοράς, σε βάρος των μικρομεσαίων επιχειρήσεων. Τα μέτρα οικονομικής παρέμβασης επομένως δεν κρίνονται μόνο πολύ λίγα σε σχέση με την πρόκληση, αλλά και πολύ …τοξικά.

- by Leonidas Vatikiotis
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- Fiscal policy, Financial Crisis, Economic Crisis, SME Financing

Drawing from Scharpf's joint decision making approach and his concept of the joint decision trap, the following paper researches the development of municipal infrastructure investment in relation to the overall financial situation. The analyzed data are being provided by a representative panel survey among 4,000 German municipalities conducted in 2016 by the German Institute of Urban Affairs. The starting point of the analysis is the description of a dilemma: growing financial disparities between the municipalities and a loss-making infrastructure of many cities and towns leads to an institutionalization of a growing number of grant programmes and forms of mixed financing. These programmes—so the analysis guiding thesis—do not provide adequate solutions for the hetero-geneity of municipal needs. By neglecting their individual needs they cannot take into account the growing disparities of municipal financial situations. Rather, they produce an institutional setting, which fosters sub-optimal policy-outcomes and is resilient to changes.

The effects of intergovernmental fiscal arrangements on variation in regional economic growth are analyzed for Russia, a country with large cross-regional differences and considerable fiscal redistribution. Moreover, fiscal reforms implemented in the first half of the 2000s, which to some extent followed scientific advice, make analysis of this case particularly interesting. We observe that postreform fiscal redistribution became more rational,

- by Lev Freinkman and +1
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- Economics, Fiscal policy, Economic and Regional Growth, Fiscal reform

This article attempts to assess to what extent the central bank or the government should respond to developments that can cause financial instability, such as housing or asset bubbles, overextended budgetary policies or excessive public and household debt. To analyse this question, we set up a simple reduced-form model in which monetary and fiscal policy interact, and imbalances (bubbles) can occur in the medium-run. Considering several scenarios with both benevolent and idiosyncratic policy-makers, the analysis shows that the answer depends on a number of characteristics of the economy, as well as on the monetary and fiscal policy preferences with respect to inflation and output stabilisation. We show that socially optimal financial instability prevention should be carried out by: (i) both monetary and fiscal policy (sharing region) under some circumstances; and (ii) fiscal policy only (specialisation region) under others. There is, however, a moral hazard problem: both policy-makers have an incentive to be insufficiently pro-active in safeguarding financial stability and shift the responsibility to the other policy. Specifically, under a range of circumstances, we obtain a situation in which neither policy mitigates instability threats (indifference region). These results can be related to the build-up of the current global financial crisis, and have strong implications for the optimal design of the delegation process.

- by Andrew Hughes Hallett
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- Economics, Fiscal policy, Global Financial Crisis, Moral Hazard

Compte rendu par Eric Fabre (université de Provence - IUT de Digne)

- by Bruno Jaudon
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- History, Modern History, Economic History, Historical Anthropology

En este artículo analizamos la evolución de la presión fiscal en España en el periodo
1983 – 2008. Las sucesivas reformas fiscales habidas en España, la propia evolución
del ciclo económico, así como el elevado y cambiante nivel de economía sumergida
introducen importantes sesgos en las estimaciones oficiales. Por ello hemos tratado
de revelar las debilidades de tales estimaciones así como aportar nuestro propio
cálculo. Nuestros hallazgos apuntan a una creciente brecha entre los datos oficiales y
la presión fiscal efectivamente soportada por los ciudadanos. Actualmente la presión
fiscal real se sitúa entre 6 y 7 puntos por debajo de los niveles que indica la OCDE.
La presión fiscal efectiva es pro – cíclica, e incrementos en el tipo mínimo del IRPF
y de las cotizaciones sociales elevan la presión fiscal. Incrementos en el tipo
máximo del IRPF y el IVA la reducen.

- by José Francisco Bellod Redondo
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- Taxation, Public Budgeting and Finance, Fiscal policy, Tax Burden

Socio economic rights are to be realised progressively through the allocation of adequate financial resources and by the setting up of infrastructure county-wide. Consequently, the Kenyan government is to allocate the maximum of its available resources towards the realisation of these rights. In the event the state fails to allocate the maximum of its available resources to realising these rights, it shall be considered to be in violation of the ICESCR under the Maastricht Guidelines on violations of economic, social and cultural rights. However the sources of government revenue come from taxation and other forms of state revenue and are split between many needs of both recurrent and development expenditure. This is the background against which this paper shall discuss financing the progressive realisation of socio economic rights in Kenya.

- by Lyla Latif
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- Finance, Constitutional Law, Taxation, Socio Economic Rights
- by Reinhard Neck
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- Economics, Fiscal policy, Monetary Policy, Public Debt

Fiscal policy in India is the taxation policy through which government generates funds for public expenditure. Development requires change process, which comes through effective governance. Fiscal policy aims in growth, equity and stability factor of the country. Present article argues whether prevailing system of fiscal measure in the country are adequate for development. The paper also suggests valuable measures to the government for making fiscal measures of the country more efficient and effective, for growth and development.

- by Dr. Pushkar Dubey
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- Economic Growth, Fiscal policy, Economic equity
- by santiago pinto
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- Fiscal policy, Geographic distribution, Economica, Económica

This study re-evaluates the impact of natural resources on growth using panel data and a factor-efficiency accounting framework. The resource-curse thesis is dismissed as capital efficiency is improved by geographically-concentrated... more

- by Óscar Afonso
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- Economics, Natural Resources, Economic Growth, Fiscal policy

This article seeks to contribute to the analyses of the impact of the Covid-19 on the global political economy. It does so through a qualitative content analysis of the key policy documents published by the International Monetary Fund (IMF) since the outbreak of the pandemic crisis. The IMF has been, historically, one of the main designers of international macroeconomic governance. The paper focuses on fiscal policy, which retains a central place in the strategy of the IMF to deal with the pandemic and especially for the post-pandemic recovery phase. The analysis of the documents of the IMF contributes (i) to appreciate the interpretation of the nature of the pandemic crisis through the lenses of a prominent international financial institution, (ii) to explore the policy strategy outlined to deal with the pandemic emergency, (iii) to assess possible changes at the level of policy, and accordingly, future directions in global political economy. Evidence suggests that fiscal stimulus, public investment and planning will likely have a prominent position in the future directions of the IMF policy advice.

Una de las últimas grandes transformaciones de nuestro IRPF fue la introducción de un sistema de tributación dual por el que determinadas manifestaciones de renta recibían un trato más beneficioso al pasar a tributar a tipos proporcionales y más reducidos. Esta corriente, común en la mayoría de Estados miembros con sistemas de renta progresivos, suele justificarse con diferentes argumentos, generalmente conectados con la competencia fiscal y la competitividad de nuestro sistema tributario.
El objetivo de este trabajar es desentrañar la evolución de la concepción dual del IRPF y examinar cuál ha sido su tratamiento en el proceso de reforma fiscal que parece pronto a concluir con la aprobación del Proyecto de Ley. Después de este recorrido y de examinar brevemente algunas experiencias comparadas, expondremos una serie de reflexiones que han ido surgiendo a medida que realizábamos este trabajo.

- by José Miguel Martin Rodriguez
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- Tax Law, Taxation, Tax Policy, Fiscal policy

In Pakistan, general sales tax (GST) is the main source of revenue for the government, but it is not a particularly efficient tax. In this article, the authors discuss the situation and the government's proposal of 2010 to replace the existing GST by the reformed general sales tax (RGST). However, two years later, the new RGST Act has not yet entered into force.

- by Prof Tapan Sarker
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- Fiscal policy, Public Policy - Social Welfare Policy
- by Giuseppe Fontana
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- Fiscal policy, Applied Economics, Pluralism, Monetary Policy
- by Daniel Halliday
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- Egalitarianism, Fiscal policy, Tax Justice, Wealth inequality

N° 771, Segunda quincena, NOVIEMBRE 2013 A1 R E V I S T A D E A S E S O R I A E S P E C I A L I Z A D A

- by Jesús A. Ramos Angeles
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- Tax Policy, Fiscal policy, Indirect Taxation, Política Fiscal

This book presents an in-depth analysis of key recommendations of the consecutive state finance commissions (SFCs) across states of India in the local and national perspective. It reviews the working of SFCs and their critical role in strengthening local governments, both Panchayats and municipalities in the various states. The volume attempts to identify some of the emerging issues related to the efficacy of SFC in fiscal decentralization. It appraises nearly eighty SFC reports and actions taken thereon by the respective State Governments with contextual analysis. Please see the link https://www.palgrave.com/gp/book/9789811622021#

My view on why it is necessary that Liberia adopt a Dual-currency System.

- by Precious Kerme Gayan
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- Government, Africa, Fiscal policy, Liberia

Unemployment is one of the most topical challenges facing South Africa. Like most developing countries, South Africa has
been using the fiscal policy framework as a tool to alleviate the high rates of unemployment. Despite the government’s
tremendous effort to influence economic behaviour using an expansionary fiscal policy framework, unemployment has
remained a challenging phenomenon in South Africa This study examined the impact of fiscal policy on unemployment in
South Africa using annual time series data for the period 1980 to 2010. A vector error correction model was used to determine
the effects of fiscal policy aggregates on unemployment in South Africa. Results from this study revealed that government
consumption expenditure and tax have a positive impact on unemployment while government investment expenditure
negatively affects unemployment in South Africa. The study recommends the South African government to reduce the
corporate tax rate from 28 per cent to figures below 20 per cent as adopted by other OECD countries Policy recommendations
were made based on these results.

- by Nehemiah Mavetera
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- Unemployment, Fiscal policy, Trade and Industrial Policy, South Africa

This essay aims to examine three macroeconomic paradoxes and their application to COVID19-related economic developments. First, it is important to outline the economic implications of the pandemic particularly focusing on the short and medium term in order to grasp the most relevant macroeconomic paradoxes. Subsequently, the essay is subdivided into an analysis of the following macroeconomic paradoxes: Paradox of Thrift, Paradox of Cost, and the Paradox of Banking Refusal. The essay will also discuss policies that may be appropriate in addressing these paradoxes.

- by Hadi Al-Wakil
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- Fiscal policy

The paper presents a theoretical and empirical survey of three common concerns about public sector debt and deficits. The first is based on the view that sooner or later, public sector deficits must be monetised and will therefore lead to inflation. The second concerns the possibility of explosive debt-deficit spirals and ultimately default or repudiation of public debt. The third relates to "financial crowding out", the decline in interest-sensitive or real exchange rate-sensitive private and foreign spending resulting from the substitution of borrowing for current taxes. The final section updates the now 12-year old lament of Blinder and Solow about the misuse of various "model-free" measures of fiscal stance.

- by Willem H Buiter
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- Economics, Macroeconomics, Fiscal policy, Fiscal Policy and debt Management

L'inflazione non è "aumento dei prezzi", ma aumento della liquidità circolante. L'aumento dei prezzi è solo una conseguenza. L'aumento vertiginoso dei prezzi al consumo è causato dalla politica monetaria delle banche centrali che hanno pompato denaro irresponsabilmente, dalla crisi del 2007 ad oggi, soprattutto in occasione della pandemia di Covid. I governi, dal canto loro, a causa dei danni che hanno causato con i lockdown, aumentano la spesa pubblica per ristori e bonus, aggravando ancora il problema. Si uscirà mai da questa spirale?

- by Maurizio Milano
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- Fiscal policy, Monetary Policy, Public Spending and the Deficit, Inflation