Hidden Bibliographic Details
| Other authors / contributors: | Kapoor, Radhicka, author.
International Monetary Fund. European Department, issuing body.
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| ISBN: | 128355609X
9781283556095
9781452758114
1452758115
1455200174
9781455200177
9781455200702
1455200700
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| Notes: | Includes bibliographical references.
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| Summary: | The paper revisits the link between fiscal policy and macroeconomic stability. Two salient features of our analysis are (1) a systematic test for the government's ambivalent role as a shock absorber and a shock inducer--removing a downward bias present in existing estimates of the impact of automatic stabilizers--and (2) a broad sample of advanced and emerging market economies. Results provide strong support for the view that fiscal stabilization operates mainly through automatic stabilizers. Also, the destabilizing impact of policy changes not systematically related to the business cycle may not be as robust as suggested in the literature.
The paper revisits the link between fiscal policy and macroeconomic stability. Two salient features of our analysis are (1) a systematic test for the governmenтђة́s ambivalent role as a shock absorber and a shock inducerђو́removing a downward bias present in existing estimates of the impact of automatic stabilizerѕђو́and (2) a broad sample of advanced and emerging market economies. Results provide strong support for the view that fiscal stabilization operates mainly through automatic stabilizers. Also, the destabilizing impact of policy changes not systematically related to the business cycle may not be as robust as suggested in the literature.
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| Other form: | Print version: Debrun, Xavier. Fiscal Policy and Macroeconomic Stability:Automatic Stabilizers Work, Always and Everywhere. Washington : International Monetary Fund, ©2010 9781455200702
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