Effects of Fiscal Consolidation in the Czech Republic

Vladimir Klyuev () and Stephen Snudden

Czech Journal of Economics and Finance (Finance a uver), 2011, vol. 61, issue 4, 306-326

Abstract: This article 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 article evaluates the impact on the economy of tightening measures envisaged in the 2011 budget. Third, the article 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: fiscal multipliers; fiscal consolidation; fiscal policy; general equilibrium models" (search for similar items in EconPapers)
JEL-codes: E62 H60 (search for similar items in EconPapers)
Date: 2011
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Citations: View citations in EconPapers (22)

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Related works:
Working Paper: The Effects of Fiscal Consolidation in the Czech Republic (2011)
Working Paper: Effects of Fiscal Consolidation in the Czech Republic (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:fau:fauart:v:61:y:2011:i:4:p:306-326

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