Fiscal Deficits and Current Account Deficits / / Michael Kumhof, Douglas Laxton

• Autore: Kumhof Michael
• Pubblicazione: Washington, D.C. : , : International Monetary Fund, , 2009
• Edizione: 1st ed.
• Descrizione fisica: 23 p. : ill
• Disciplina: 338.973
• Soggetto topico: Finance, Public - Econometric models; Debts, Public; Accounts current; Fiscal policy; Banks and Banking; Exports and Imports; Public Finance; Interest Rates: Determination, Term Structure, and Effects; Debt; Debt Management; Sovereign Debt; Current Account Adjustment; Short-term Capital Movements; Finance; Public finance & taxation; International economics; Real interest rates; Government debt management; Public debt; Current account; Current account deficits; Interest rates; Balance of payments
• Soggetto geografico: United States
• Altri autori: LaxtonDouglas
• Note generali: "October 2009".
• Nota di bibliografia: Includes bibliographical references.
• Nota di contenuto: Cover Page -- Title Page -- Copyright Page -- Contents -- I. Introduction -- 1. IMF WEO and CBO Baseline Deficit and Debt Projections for the United States -- 2. CBO Long-Term Projections for U.S. Fiscal Deficits and Debt -- II. The Model -- A. Households -- 3. Dissaving and the Role of the Planning Horizon -- B. Firms -- 1. Manufacturers -- 2. Distributors -- 3. Retailers -- C. Government -- 1. Budget Constraint -- 2. Fiscal Policy -- 3. Monetary Policy -- D. Equilibrium and Balance of Payments -- III. Calibration -- IV. Permanent Increases in Fiscal Deficits -- A. U.S. Fiscal Deficits -- 4. One Percentage Point Deficit Shock, Instrument = Taxation, Part I -- 5. One Percentage Point Deficit Shock, Instrument = Taxation, Part II -- 6. One Percentage Point Deficit Shock, Instrument = Taxation, Part III -- 7. Current Account Deficit and the Planning Horizon -- 8. Real Interest Rate and the Planning Horizon -- B. Sensitivity Analysis -- C. Small Open Economies -- 9. One Percentage Point Deficit Shock in a Small Open Economy -- 10. Large Open Economy Dissaving -- 11. Small Open Economy Dissaving -- V. Conclusion -- References -- Footnotes.
• Sommario/riassunto: The effectiveness of recent fiscal stimulus packages significantly depends on the assumption of non-Ricardian savings behavior. We show that, under the same assumption, fiscal deficits can have worrisome implications if they turn out to be permanent. First, if they occur in large countries they significantly raise the world real interest rate. Second, they cause a short run current account deterioration equal to around 50 percent of the fiscal deficit deterioration. Third, the longer run current account deterioration equals almost 75 percent for a large economy such as the United States, and almost 100 percent for a small open economy.
• Titolo autorizzato: Fiscal Deficits and Current Account Deficits
• ISBN: 1-4623-1641-7; 9786612844386; 1-4527-0667-0; 1-4518-7384-0; 1-282-84438-5
• Formato: Materiale a stampa
• Livello bibliografico: Monografia
• Lingua di pubblicazione: Inglese
• Record Nr.: 9910829094303321
• Lo trovi qui: Univ. Federico II
• Serie: IMF Working Papers; Working Paper ; ; No. 2009/237