Fiscal Consolidation: An Exercise in the Methodology of Coordination

Caporale, Guglielmo Maria; Chui, Michael; Hall, Stephen G.; Henry, Brian

doi:10.11130/jei.2005.20.1.1

Cited by 4 publications

(1 citation statement)

References 21 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…iii In two companion papers (see Caporale et al (2000a,b) we show that these conclusions on the sizeable gains from monetary policy cooperation are robust to the type of shock considered. In particular: (i) a striking improvement in the overall control of inflation and a reduction in output costs results from coordinated responses to temporary price shocks (see Caporale et al, 2000a); (ii) in the case of fiscal shocks, there are few externalities when only fiscal policy is coordinated, whilst coordination of both fiscal and monetary policy results in substantial externalities and welfare improvements (see Caporale et al (2000b)).…”

Section: Discussionmentioning

confidence: 99%

Evaluating the Gains to Cooperation in the G-3

et al. 2003

Self Cite

View full text Add to dashboard Cite

A model of the G-3 is introduced which has a transparent structure including a simple but analytically tractable supply side. New optimising techniques are used to conduct extensive policy experiments on this multicountry model (including full Nash solutions and a fully cooperative solution). In the case of a fiscal shock originating in the US we find evidence of significant spillovers to other countries, which can only be ameliorated in the fully cooperative regime.

show abstract

Section: Discussionmentioning

confidence: 99%

Evaluating the Gains to Cooperation in the G-3

et al. 2003

Self Cite

View full text Add to dashboard Cite

show abstract

Achieving sustainable growth in emerging economies: Insights from advance method moment of quantile regression

Afshan,

Yaqoob,

et al. 2024

Gondwana Research

View full text Add to dashboard Cite

International Coordination of Macroeconomic Policies: Still Alive in the New Millennium?

et al. 2002

View full text Add to dashboard Cite

In this paper we provide two building blocks for an analysis of international policy coordination: (1) a survey of models of policy coordination, and (2) an account of experience with policy coordination among the G-7 countries and within Europe since the breakdown of the Bretton Woods System. Using these building blocks, we investigate the correspondence between the models and experience and attempt to draw lessons for both the modelers and the practitioners. We find that the correspondence is close enough that the models help in analyzing several instances of actual policy coordination, but that the correspondence could be even closer. As for lessons for modelers, we suggest that they devote more attention to the analysis of information exchange, a key feature of practical policy coordination; to the coordination of different types of policies; to the ramifications of political divisions within countries; and to the implications of market irrationality and speculative bubbles. As for lessons for policy makers, we suggest that they give more consideration to the choice of their ultimate objectives, in particular to whether the current account should always be close to balance; to achieving better internal policies; and to the greater use of fiscal policy as a stabilization tool.

show abstract

Fiscal Consolidation: An Exercise in the Methodology of Coordination

Abstract: Abstract• JEL Classification: C5, E1, F4

Cited by 4 publications

References 21 publications

Evaluating the Gains to Cooperation in the G-3

Evaluating the Gains to Cooperation in the G-3

Achieving sustainable growth in emerging economies: Insights from advance method moment of quantile regression

International Coordination of Macroeconomic Policies: Still Alive in the New Millennium?

Contact Info

Product

Resources

About