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The research catalogue is an archive of ESRC-funded grants and outputs. Links, files and other content will no longer be maintained or updated after April 2014.

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

Grant reference: RES-062-23-1436

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Journal article details

Uncertain fiscal consolidations
The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition—either tax- or spending-based—are uncertain. 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 or successful in stabilising government debt. We argue that the conditions that could render fiscal consolidation efforts expansionary are unlikely to apply in the current economic environment.

Primary contributor

Co-author Campbell Leith

Additional contributors

Co-author Huixin Bi
Co-author Eric Leeper

Additional details

Blackwell Publishing
07 February 2013
Economic journal


BiLeeperLeith_EJ_5th.pdf (.pdf / 348kb)