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Working Paper 05-02 - Automatic fiscal stabilisers

Author

Listed:
  • Eric Meyermans

Abstract

In this paper, we investigate how automatic fiscal stabilisers affect economic activity in the euro area. For this purpose we apply several shocks to the NIME-model, and we compare the adjustment path of the main macroeconomic variables under a regime that allows the automatic fiscal stabilisers to operate fully, with the results for a regime that tempers the working of the automatic fiscal stabilisers. We also compare the results for the euro area with results for the United States and Japan.In the second section of this paper, we briefly describe the NIME model. In the third section, we present simulation results for various shocks under two different fiscal regimes.

Suggested Citation

  • Eric Meyermans, 2002. "Working Paper 05-02 - Automatic fiscal stabilisers," Working Papers 200205, Federal Planning Bureau, Belgium.
    • Handle: RePEc:fpb:wpaper:200205
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    More about this item

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • C5 - Mathematical and Quantitative Methods - - Econometric Modeling

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