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The Potential Contribution of Fiscal Policy to Rebalancing and Growth in New Zealand, Werner Schule

Simulations with the Fund’s GIMF model show that raising government savings in New Zealand permanently by 1 percent of GDP is likely to improve the current account balance by about ½ percent of GDP. The way government savings are achieved matters for GDP but little for the current account. However, results are sensitive to changes in the risk premium. Fiscally neutral changes in taxes and expenditures can raise output in the long run
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Global Integrated Monetary and Fiscal Model (GIMF); III. New Zealand's Imbalances and Growth Challenges; IV. Will Higher Government Savings Lead to Higher National Savings?; 1. Permanent Decrease in Government Consumption by 1 Percent of GDP; 2. Permanent Increase in Government Savingss by 1 Percent of GDP; 3. Impact of a Larger Fall in the Risk Premium; V. Fiscally Neutral Changes in Taxes and Expenditures; 4. Shifting Taxes on Consumption; 5. Reducing the Size of the State
Literary Form
non fiction
"May 2010."
Physical Description
1 online resource (36 p.)
Specific Material Designation
Form Of Item

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