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Our Research Catalogue contains grants and outputs data up to the end of April 2014. Records will no longer be updated after this date.

New Directions in Monetary and Fiscal Policy Analysis at the Macroeconomic Level

Grant reference: RES-062-23-1436

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Working paper details

Uncertain fiscal consolidations
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.
English

Primary contributor

Author Huixin Bi

Additional contributors

Co-author Eric Leeper
Co-author Campbell Leith

Additional details

17844
National Bureau of Economic Research
01 February 2012
Cambridge, MA
National Bureau of Economic Research working paper

Cite this outcome

Harvard

Bi, Huixin et al (2012) Uncertain fiscal consolidations. 17844. Cambridge, MA: National Bureau of Economic Research.

Vancouver

Bi Huixin et al. Uncertain fiscal consolidations. 17844. Cambridge, MA: National Bureau of Economic Research; 2012.