Begrotingsbeleid in crisistijd

Fiscal policy in times of crisis

E.R. Afman and Clement van de Coevering

MPRA Paper from University Library of Munich, Germany

Abstract: Dutch Public finances have taken a severe hit. As a result of the financial crisis, government debt has increased by 20 percentage points to almost 66 percent of GDP. Without a significant improvement of the EMU balance debt will continue to rise in the coming years. The current crisis raises questions about the required pace for improving government finances. Developments in economic theory and the experience of the 1970s, when supply problems were met by demand stimulus, have taught us the limitations of active budgetary policy. Nonetheless, these policies experienced a revival at the start of the current crisis when economies were faced with a sudden large drop in demand. The more structural nature of the low growth and the high debt are important arguments not to persevere with these policies in the coming years. It will not be possible to "outgrow debt" as was feasible in the past. The increasing importance of international financial markets are an additional reason to improve the Dutch budgetary position in the short term.

Keywords: Begrotingsbeleid; crisis; economische groei; financiële markten (search for similar items in EconPapers)
JEL-codes: E6 E62 H6 (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations:

Published in Tijdschrift voor Openbare Financiën 2.44(2012): pp. 68-80

Downloads: (external link)
https://mpra.ub.uni-muenchen.de/60261/1/MPRA_paper_60261.pdf original version (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pra:mprapa:60261

Access Statistics for this paper

More papers in MPRA Paper from University Library of Munich, Germany Ludwigstraße 33, D-80539 Munich, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Joachim Winter ().