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Options for fiscal consolidation in the United Kingdom /
This paper examines the macroeconomic effects of different timing and composition of fiscal adjustment in the United Kingdom using the IMF's Global Fiscal Model. Early consolidation dampens aggregate demand in the short term, but increases output in the long term as smaller primary surpluses ar...
| Clasificación: | Libro Electrónico |
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| Autores principales: | , |
| Autores Corporativos: | , |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
[Washington, D.C.] :
International Monetary Fund, European Dept. and Fiscal Affairs Dept.,
2006.
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| Colección: | IMF working paper ;
WP/06/89. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | This paper examines the macroeconomic effects of different timing and composition of fiscal adjustment in the United Kingdom using the IMF's Global Fiscal Model. Early consolidation dampens aggregate demand in the short term, but increases output in the long term as smaller primary surpluses are needed as a result of lower interest payments. Reducing government transfers or current government spending provides larger gains than increasing taxes, in particular compared to raising corporate or personal income taxes. We show that these conclusions are robust under alternative behavioral assumptions and parameterizations. A reduction in global saving would make early consolidation more urgent from both cyclical and long-term perspectives. Finally, we show that tax reform aimed at increasing incentives to save could provide support to fiscal consolidation measures. |
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| Descripción Física: | 1 online resource (22 pages) : illustrations |
| Bibliografía: | Includes bibliographical references. |
| ISBN: | 1283516136 9781283516136 9781451908848 1451908849 1462352839 9781462352838 1452750149 9781452750149 9786613828583 6613828580 |
| ISSN: | 2227-8885 ; |