Hostname: page-component-78c5997874-ndw9j Total loading time: 0 Render date: 2024-11-14T22:05:23.172Z Has data issue: false hasContentIssue false
  • English
  • Français

Fiscal Policy Effectiveness in the Banking Crisis

Published online by Cambridge University Press:  26 March 2020

Ray Barrell ,
Tatiana Fic  and
Iana Liadze
Get access Rights & Permissions [Opens in a new window]

Abstract

We investigate the effects of changes in taxes using the National Institute international macro model, NiGEM. A comparison on fiscal impulses worth 1 per cent of GDP for one year is made, with a comparison of a direct tax change, indirect tax change, and a lump sum payment. Multipliers are assessed one country at a time and when policy is coordinated to increase its impacts. We look at the importance of releasing borrowing constraints in a banking crisis. The analysis assumes financial and foreign exchange markets are forward looking.

Type
Articles
Information
National Institute Economic Review , Volume 207 , January 2009 , pp. 43 - 50
Copyright
Copyright © 2009 National Institute of Economic and Social Research

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Al Eyd, A. and Barrell, R. (2005), ‘Estimating tax and benefit multipliers in Europe’, Economic Modelling, 22, pp. 759–76.CrossRefGoogle Scholar
Barrell, R. and Davis, E.P. (2007), ‘Financial liberalisation, consumption and wealth effects in 7 OECD countries’, Scottish Journal of Political Economy, 54, 2, pp. 254–67.CrossRefGoogle Scholar
Barrell, R., Davis, E. and Pomerantz, O. (2006), ‘Costs of financial instability, household-sector balance sheets and consumption’, Journal of Financial Stability, 2, pp. 194–216.CrossRefGoogle Scholar
Barrell, R. and Dury, K. (2003), ‘Asymmetric labour markets in a converging Europe: do differences matter?’, National Institute Economic Review, 183, pp. 56–65.CrossRefGoogle Scholar
Barrell, R., Fic, T. and Liadze, I. (2008), ‘Fiscal policy effectiveness in the banking crisis’, www.niesr.ac.uk.Google Scholar
Barrell, R., Holland, D., Liadze, I. and Pomerantz, O. (2007), ‘Fiscal spillovers and trade relations in Europe’, NIESR Discussion paper no. 289.Google Scholar
Blanchard, O. and Perotti, R. (2002), ‘An empirical characterisation of the dynamic effects of changes in government spending and taxes on output’, Quarterly Journal of Economics.CrossRefGoogle Scholar
Campbell, J.Y. and Mankiw, N.G. (1991), ‘The response of consumption to income: a cross-country investigation’, European Economic Review, 35, pp. 723–67.CrossRefGoogle Scholar
Corsetti, G. and Müller, G. (2008), ‘The effectiveness of fiscal policy depends on the financing and monetary policy mix’, www.voxeu.org.Google Scholar
Dornbusch, R. (1980), ‘Exchange rate economics: where do we stand’, Brookings Papers on Economic Activity 1, pp. 143–85.Google Scholar
Gürkaynak, R.S. (2008), ‘Coordinated responses versus identical responses’, in ‘What G20 leaders must do to stabilise our economy and fix the financial system’, VoxEU.org publication.Google Scholar
Hemming, R., Kell, M. and Mahfouz, S. (2002), ‘The effectiveness of fiscal policy in stimulating economic activity - a review of the literature’, IMF Working Paper 208(2).Google Scholar
Jappelli, T. and Pagano, M. (1989), ‘Consumption and capital market imperfections: an international comparison’, American Economic Review, 79(5), pp. 1088–105, December.Google Scholar
Layard, R., Nickell, S. and Jackman, R. (1990), Unemployment: Macro Economic Performance and the Labour Market, Oxford University Press.Google Scholar
Spence, M. (2008), ‘Agenda for the next few months’, in ‘What G20 leaders must do to stabilise our economy and fix the financial system’, VoxEU.org publication.Google Scholar