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Effects of Fiscal Consolidation in the Czech Republic, Stephen Snudden, Vladimir Klyuev

This paper uses the IMF’s Global Integrated Monetary and Fiscal Model (GIMF) to assess the impact of fiscal consolidation on the Czech economy. Its contribution is threefold. First, it provides estimates of dynamic fiscal multipliers for a variety of fiscal instruments (tax and expenditure), consolidation durations, assumptions about credibility, and monetary policy responses. Second, the paper evaluates the impact on the economy of tightening measures envisaged in the 2011 budget. Third, the paper considers alternative packages for consolidation beyond 2011 to achieve the government’s balanced budget target by 2016 and identifies which forms of adjustment are more "growth-friendly"
Table Of Contents
Cover Page; Title Page; Copyright Page; Abstract; Contents; I. Introduction; II. Literature Review; III. Description of the Model; IV. Estimates of the Impact of Fiscal Consolidation; 1. Impact of 10-Year 1 Percent Improvement in Fiscal Balance on Real GDP; 1. Impact of Fiscal Consolidation on Real GDP by Instrument; 2. Impact of 1 Percent of GDP Cut in Government Consumption in Real GDP under Different Assumptions; 2. Comparison of 1-Year Temporary Fiscal Multipliers; 3. Present Value Multipliers; V. The Impact of 2011 Tightening; 4. 2011 Budget Consolidation Measures by GIMF Instrument
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (85 p.)
Specific Material Designation
Form Of Item

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