Goujard, Antoine
Cross - country spillovers from fiscal consolidations / Antoine Goujard .-- , 2017
Disponible en formato electrónico a través de la Biblioteca del IEF. Resumen. Conclusión. Bibliografía.
In the aftermath of the global financial crisis, many OECD countries adopted fiscal consolidation strategies to reduce their debt-to-GDP ratios. This paper investigates the effects of fiscal consolidation on trading partners. growththrough trade linkages. Using a measure of exogenous fiscal shocks in exportmarkets, fiscal consolidation spillovers are found to slow down domestic growth and decrease employment. To the extent that fiscal consolidations are synchronised, fiscal policies have large spillover effects on output. Spillovers of fiscal consolidations on growth are found to be initially larger betweencountries belonging to currency unions, though this larger impact vanishes over the medium term. Larger spillovers of fiscal consolidation coincide with lower bilateral exports, higher bilateral imports and relative increases in unitlabour costs in currency unions. Spillovers of fiscal consolidation are also found to be more detrimental to domestic growth during economic downturns in export markets.
POLITICA FISCAL
CONSOLIDACION
GASTO PUBLICO
DEFICIT PUBLICO
REDUCCION
Fiscal Studiesv. 38, n. 2, June 2017, p. 219-267
Cross - country spillovers from fiscal consolidations / Antoine Goujard .-- , 2017
Disponible en formato electrónico a través de la Biblioteca del IEF. Resumen. Conclusión. Bibliografía.
In the aftermath of the global financial crisis, many OECD countries adopted fiscal consolidation strategies to reduce their debt-to-GDP ratios. This paper investigates the effects of fiscal consolidation on trading partners. growththrough trade linkages. Using a measure of exogenous fiscal shocks in exportmarkets, fiscal consolidation spillovers are found to slow down domestic growth and decrease employment. To the extent that fiscal consolidations are synchronised, fiscal policies have large spillover effects on output. Spillovers of fiscal consolidations on growth are found to be initially larger betweencountries belonging to currency unions, though this larger impact vanishes over the medium term. Larger spillovers of fiscal consolidation coincide with lower bilateral exports, higher bilateral imports and relative increases in unitlabour costs in currency unions. Spillovers of fiscal consolidation are also found to be more detrimental to domestic growth during economic downturns in export markets.
POLITICA FISCAL
CONSOLIDACION
GASTO PUBLICO
DEFICIT PUBLICO
REDUCCION
Fiscal Studiesv. 38, n. 2, June 2017, p. 219-267