Central Bank Independence and Fiscal Policy: Can the Central Bank Restrain Deficit Spending? [PDF]
Independent central banks prefer balanced budgets due to the long-run connection between deficits and inflation, and can enforce their preference through interest rate increases and denial of credit to the government.
Cristina Bodea, Masaaki Higashijima
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Tax and Spending Shocks in the Open Economy: Are the Deficits Twins? [PDF]
We present evidence on the open economy consequences of US fiscal policy shocks identified through proxy-instrumental variables. Tax shocks and government spending shocks that raise the government budget deficit lead to persistent current account deficits. In particular, the negative response of the current account to exogenous tax reductions through a
Mathias Klein, Ludger Linnemann
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Impact of Attention-Deficit/Hyperactivity Disorder (ADHD) on prescription dug spending for children and adolescents: increasing relevance of health economic evidence [PDF]
BackgroundDuring the last decade, pharmaceutical spending for patients with attention-deficit-hyperactivity disorder (ADHD) has been escalating internationally.ObjectivesFirst, to estimate future trends of ADHD-related drug expenditures from the ...
Michael Schlander
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Factors Contributing to Deficit Spending in Indonesia
The issues concerning deficit spending have been a major concern in macroeconomic policies. Each country has a different method to solve the problems, including by devising appropriate deficit spending policies. This study investigates the effect of deficit spending in Indonesia.
Sri Walyoto+2 more
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Understanding the effects of government spending on consumption [PDF]
Recent evidence on the effect of government spending shocks on consumption cannot be easily reconciled with existing optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non-Ricardian ...
Galí, Jordi+2 more
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DEFICIT SPENDING DAN PENGARUHNYA TERHADAP PENDAPATAN NASIONAL DAN INFLASI
Creating primary money to maintain national product growth performance can pass deficit spending policy and pushing the building of the models can get macroeconomics policy.
Daryono Soebagiyo
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Alternative Strategies to Reduce Public Deficits: Taxes vs. Spending [PDF]
We examine the effects of several alternative measures intended to reduce government deficits for the case of Spain, distinguishing between those acting through taxes and through spending. The Spanish case is relevant as an example of front-loaded fiscal adjustment that has led to a large GDP fall, where (unlike the cases of Greece, Ireland and ...
Oscar Bajo‐Rubio+1 more
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Public Spending, Public Deficits, and Government Coalitions [PDF]
This study examines the relationship between types of government and level of public spending. There are two competing perspectives about the consequences of coalition governments for the size of public expenditures. The most common argument is that government spending increases under coalition governments, compared with one-party governments. Another
André Blais+2 more
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Government Spending and Budget Deficits in the 1980s: A Personal View [PDF]
This paper, which was written as part of the NBER project on American economic policy in the 1980s, examines the changes in government spending and budget deficits during the decade. The paper analyzes why the deficit increased substantially and looks at the policy options for reducing the deficit that were considered.
Martin Feldstein
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Is Deficit Spending Feasible in the Long Run?
Michael Carlberg
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