Record Nr.

UNINA9910464241803321

Autore

Leigh Daniel

Titolo

Fiscal and monetary policy during downturns [[electronic resource] ] : evidence from the G7 / / prepared by Daniel Leigh and Sven Jari Stehn

Pubbl/distr/stampa


[Washington, D.C.], : International Monetary Fund, Fiscal Affairs Dept, 2009

ISBN

1-4623-1542-9

1-4527-0668-9

1-4518-7198-8

9786612842726

1-282-84272-2

Descrizione fisica

1 online resource (23 p.)

Collana

IMF working paper ; ; WP/09/50

Altri autori (Persone)

StehnSven Jari

Soggetti

Fiscal policy

Monetary policy

Electronic books.

Lingua di pubblicazione

Inglese

Formato

Materiale a stampa

Livello bibliografico

Monografia

Note generali

"March 2009."

Nota di bibliografia

Includes bibliographical references.

Nota di contenuto

Contents; I. Introduction and Summary; II. Event-Study Analysis; A. Data and Methodology; B. Results; Tables; 1. How Often and Quickly did Fiscal Stimulus Arriva During Downturns?; III. Vector-Autoregression (VAR) Analysis; A. Methodology; 2. How Often and Quickly did Fiscal Stimulus Arrive During Upturns?; B. Baseline Results; Figures; 1. How Strongly do Fiscal and Monetary Policy Respond?; 2. How does the Response Vary Across Fiscal Instruments and G7 Members?; 3. How Robust is the Response to the Cyclical Indicator?; C. Asymmetry; 4. Is There a Bias Towards Easing in Downturn?

D. Policy in Real Time5. Errors in Identifying Negative Growth in the G7; 3. How Reliable are Preliminary Growth Estimates?; 6. Has Policy Erroneously Responded to Perceived Growth Shocks?; IV. Case Study: Have U.S. Tax Cuts Been Timely and Temporary?; V. Conclusion; 4. Legislated Tax Changes During Downturns; 5. Summary of Countercyclical Tax Changes; References

Sommario/riassunto

This paper analyzes how fiscal and monetary policy typically respond

during downturns in G7 countries. It evaluates whether discretionary fiscal responses to downturns are timely and temporary, and compares the response of fiscal policy to that of monetary policy. The results suggest that while responding more weakly and less quickly than monetary policy, discretionary fiscal policy is more timely than conventional wisdom would suggest, particularly in "Anglo-Saxon" countries, but the response differs substantially across fiscal instruments. Both fiscal and monetary policy are found to be subj