Market-Based Fiscal Discipline in Monetary Unions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market-Based Fiscal Discipline in Monetary Unions write by Mr.Morris Goldstein. This book was released on 1991-09-01. Market-Based Fiscal Discipline in Monetary Unions available in PDF, EPUB and Kindle. The concept of market-based fiscal discipline posits that a government which runs persistent, excessive fiscal deficits will face an increased cost of borrowing and eventually, a reduced availability of credit, and that these market actions will provide an incentive to correct irresponsible fiscal behavior. This paper presents new empirical evidence on market-based fiscal discipline by estimating the relationship between the cost of borrowing and fiscal policy behavior across U.S. states. We find that U.S. states which have followed more prudent fiscal policies are perceived by the market as having lower default risk and are therefore able to reap the benefit of lower borrowing costs.
Market-Based Fiscal Discipline in Monetary Unions
Market-Based Fiscal Discipline in Monetary Unions - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Market-Based Fiscal Discipline in Monetary Unions write by Geoffrey R. Woglom. This book was released on 2006. Market-Based Fiscal Discipline in Monetary Unions available in PDF, EPUB and Kindle. The concept of market-based fiscal discipline posits that a government which runs persistent, excessive fiscal deficits will face an increased cost of borrowing and eventually, a reduced availability of credit, and that these market actions will provide an incentive to correct irresponsible fiscal behavior. This paper presents new empirical evidence on market-based fiscal discipline by estimating the relationship between the cost of borrowing and fiscal policy behavior across U.S. states. We find that U.S. states which have followed more prudent fiscal policies are perceived by the market as having lower default risk and are therefore able to reap the benefit of lower borrowing costs.
Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments
Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments write by Mr.Francesco P. Mongelli. This book was released on 1997-07-01. Effects of the European Economic and Monetary Union (EMU) on Taxation and Interest Spending of National Governments available in PDF, EPUB and Kindle. This paper examines the interest spending and taxation channels through which EMU could affect the public finances. It provides a framework for examining different views on a further narrowing of interest rate differentials. A model of Blanchard and Fischer is amended to analyze the two channels, and empirical evidence on the tax harmonization process is presented. The paper argues that “high-debt” and “high-tax” countries pursuing prudent fiscal policies could benefit the most from EMU: if monetary and widespread fiscal discipline are jointly established, interest rates could decline rapidly, while tax harmonization is likely to be gradual.
Fiscal Discipline in WAEMU
Fiscal Discipline in WAEMU - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook Fiscal Discipline in WAEMU write by Mr.Ermal Hitaj. This book was released on 2013-10-23. Fiscal Discipline in WAEMU available in PDF, EPUB and Kindle. This paper gauges the scope for market discipline and the effectiveness of the regional surveillance framework in the West African Economic and Monetary Union (WAEMU). The paper finds that the responsiveness of sovereign bond rates to governments’ fiscal behavior in the regional financial market remains limited. In addition, the paper examines the effectiveness of fiscal rules and institutions in an environment where financial markets fall short of exerting a significant disciplining effect on governments.
The Effects of the European Economic and Monetary Union (EMU)on National Fiscal Sustainability
The Effects of the European Economic and Monetary Union (EMU)on National Fiscal Sustainability - read free eBook in online reader or directly download on the web page. Select files or add your book in reader. Download and read online ebook The Effects of the European Economic and Monetary Union (EMU)on National Fiscal Sustainability write by Mr.Francesco P. Mongelli. This book was released on 1996-07-01. The Effects of the European Economic and Monetary Union (EMU)on National Fiscal Sustainability available in PDF, EPUB and Kindle. This paper presents a methodology to analyze the responsiveness of fiscal sustainability to the “endogenous fiscal discipline” that will be strengthened by the EMU. This discipline arises in response to the harmonization of tax systems, the loss of control of current and prospective money financing, and the deepening of financial market-based discipline. The model used in this paper is a generalization of Blanchard’s (1984) model, in which the interest rate is determined endogenously. This provides the framework to analyze more features of the linkage between sustainability and endogenous fiscal discipline. This paper also presents a new intratemporal fiscal sustainability index.
