Effects of Fiscal Consolidation in the Czech Republic

Stephen Snudden and Vladimir Klyuev

No 2011/065, IMF Working Papers from International Monetary Fund

Abstract: 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".

Keywords: WP; aggregate demand; consumption tax; current account; present value (search for similar items in EconPapers)
Pages: 65
Date: 2011-03-01
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Citations: View citations in EconPapers (27)

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Related works:
Journal Article: Effects of Fiscal Consolidation in the Czech Republic (2011)
Working Paper: The Effects of Fiscal Consolidation in the Czech Republic (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:imf:imfwpa:2011/065

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