Fiscal policy in Central and Eastern Europe with real time data: Cyclicality, inertia and the role of EU accession
DNB Working Papers from Netherlands Central Bank, Research Department
This paper evaluates the cyclicality, inertia and effect of EU accession on fiscal policy in Central and Eastern Europe using a real time dataset. Budget balances are found to react in a stabilising way to economic activity, and they are less inert than is typically found in Western Europe. There is clear evidence of a fiscal loosening in the run-up to EU accession. This began in 1999 in larger central European countries, often identified as â€œfront-runners. The other seven began loosening in 2001, after the Nice Treaty had been agreed and their EU entry confirmed. For both sets of countries, this loosening cumulatively amounts to some 3% of GDP.ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ ÂÂ
Keywords: Central and Eastern Europe; Fiscal Policy; Real Time Data; EU Accession. (search for similar items in EconPapers)
JEL-codes: E62 H6 E61 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-eec, nep-mac and nep-tra
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Journal Article: Fiscal policy in Central and Eastern Europe with real time data: cyclicality, inertia and the role of EU accession (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:dnb:dnbwpp:214
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