05083oam 22010574 450 991078833900332120230721045655.01-4623-1542-91-4527-0668-91-4518-7198-897866128427261-282-84272-2(CKB)3170000000055224(EBL)1608224(SSID)ssj0000940818(PQKBManifestationID)11586355(PQKBTitleCode)TC0000940818(PQKBWorkID)10956081(PQKB)10355850(OCoLC)650287747(MiAaPQ)EBC1608224(IMF)WPIEE2009050(EXLCZ)99317000000005522420020129d2009 uf 0engur|n|---|||||txtccrFiscal and Monetary Policy During Downturns : Evidence From the G7 /Sven Jari Stehn, Daniel LeighWashington, D.C. :International Monetary Fund,2009.1 online resource (23 p.)IMF Working Papers"March 2009."1-4519-1633-7 Includes bibliographical references.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; ReferencesThis 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.IMF Working Papers; Working Paper ;No. 2009/050Fiscal policyMonetary policyMacroeconomicsimfPublic FinanceimfProduction and Operations ManagementimfFiscal PolicyimfComparative or Joint Analysis of Fiscal and Monetary PolicyimfStabilizationimfTreasury PolicyimfNational Government Expenditures and Related Policies: GeneralimfMacroeconomics: ProductionimfPublic finance & taxationimfFiscal policyimfFiscal stanceimfFiscal stimulusimfOutput gapimfCurrent spendingimfProductionimfExpenditureimfEconomic theoryimfExpenditures, PublicimfUnited StatesimfFiscal policy.Monetary policy.MacroeconomicsPublic FinanceProduction and Operations ManagementFiscal PolicyComparative or Joint Analysis of Fiscal and Monetary PolicyStabilizationTreasury PolicyNational Government Expenditures and Related Policies: GeneralMacroeconomics: ProductionPublic finance & taxationFiscal policyFiscal stanceFiscal stimulusOutput gapCurrent spendingProductionExpenditureEconomic theoryExpenditures, PublicStehn Sven Jari1472662Leigh Daniel1462093International Monetary Fund.Fiscal Affairs Dept.DcWaIMFBOOK9910788339003321Fiscal and Monetary Policy During Downturns3716441UNINA