1.

Record Nr.

UNINA9910973832103321

Autore

Stehn Sven Jari

Titolo

Fiscal and Monetary Policy During Downturns : : Evidence From the G7 / / Sven Jari Stehn, Daniel Leigh

Pubbl/distr/stampa

Washington, D.C. : , : International Monetary Fund, , 2009

ISBN

9786612842726

9781462315420

1462315429

9781452706689

1452706689

9781451871982

1451871988

9781282842724

1282842722

Edizione

[1st ed.]

Descrizione fisica

1 online resource (23 p.)

Collana

IMF Working Papers

Altri autori (Persone)

LeighDaniel

Disciplina

338.283945

Soggetti

Fiscal policy

Monetary policy

Comparative or Joint Analysis of Fiscal and Monetary Policy

Current spending

Economic theory

Expenditure

Expenditures, Public

Fiscal Policy

Fiscal stance

Fiscal stimulus

Macroeconomics

Macroeconomics: Production

National Government Expenditures and Related Policies: General

Output gap

Production and Operations Management

Production

Public finance & taxation

Public Finance

Stabilization

Treasury Policy

United States



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 subject to an easing bias, with more easing during downturns than tightening during upturns; and liable to easing in response to erroneously perceived downturns, many of which are subsequently revised to expansions.