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Uncertain Fiscal Consolidations / Huixin Bi, Eric M. Leeper, Campbell B. Leith.

NBER Working papers Available online

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Format:
Book
Author/Creator:
Bi, Huixin.
Contributor:
National Bureau of Economic Research.
Leeper, Eric M.
Leith, Campbell B.
Series:
Working Paper Series (National Bureau of Economic Research) no. w17844.
NBER working paper series no. w17844
Language:
English
Physical Description:
1 online resource: illustrations (black and white);
Place of Publication:
Cambridge, Mass. National Bureau of Economic Research 2012.
Summary:
The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition are uncertain. Drawing on the evidence in Alesina and Ardagna (2010), we emphasize whether or not the fiscal consolidation is driven by tax rises or expenditure cuts. We find that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt and expectations over the likelihood and composition of fiscal consolidations all matter in determining the extent to which a given consolidation is expansionary and/or successful in stabilizing government debt.
Notes:
Print version record
February 2012.

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