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Expansionary Fiscal Contraction
The Expansionary Fiscal Contraction (EFC) hypothesis predicts that, under certain limited circumstances, a major reduction in government spending (such as austerity measures) that changes future expectations about taxes and government spending will expand private consumption, resulting in overall economic expansion. This hypothesis was introduced by Francesco Giavazzi and Marco Pagano in 1990 in a paper that used the fiscal restructurings of Denmark and Ireland in the 1980s as examples. The concept that fiscal contraction can result in growth is commonly known as "expansionary austerity". Theoretical basis The authors describe this as the "German view" of budget-cutting. The German view also includes the more traditional assumption that reducing government expenditures as a percent of GDP will lessen crowding out, making "room for the private sector to expand" which only operates when the economy is near full employment. The authors also did not provide a model for EFC but r ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Austerity
Austerity is a set of political-economic policies that aim to reduce government budget deficits through spending cuts, tax increases, or a combination of both. There are three primary types of austerity measures: higher taxes to fund spending, raising taxes while cutting spending, and lower taxes and lower government spending. Austerity measures are often used by governments that find it difficult to borrow or meet their existing obligations to pay back loans. The measures are meant to reduce the budget deficit by bringing government revenues closer to expenditures. Proponents of these measures state that this reduces the amount of borrowing required and may also demonstrate a government's fiscal discipline to creditors and credit rating agencies and make borrowing easier and cheaper as a result. In most macroeconomic models, austerity policies which reduce government spending lead to increased unemployment in the short term. These reductions in employment usually occur di ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Private Consumption
Consumption is the act of using resources to satisfy current needs and wants. It is seen in contrast to investing, which is spending for acquisition of ''future'' income. Consumption is a major concept in economics and is also studied in many other social sciences. Different schools of economists define consumption differently. According to mainstream economists, only the final purchase of newly produced goods and services by individuals for immediate use constitutes consumption, while other types of expenditure — in particular, fixed investment, intermediate consumption, and government spending — are placed in separate categories (see consumer choice). Other economists define consumption much more broadly, as the aggregate of all economic activity that does not entail the design, production and marketing of goods and services (e.g. the selection, adoption, use, disposal and recycling of goods and services). Economists are particularly interested in the relationship betwe ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Economic Expansion
An economic expansion is an increase in the level of economic activity, and of the goods and services available. It is a period of economic growth as measured by a rise in real GDP. The explanation of fluctuations in aggregate economic activity between economic expansions and contractions is one of the primary concerns of macroeconomics. Typically an economic expansion is marked by an upturn in production and utilization of resources. Economic recovery and prosperity are two successive phases of expansion, where as a recession is defined as two declining periods of GDP. Expansion may be caused by factors external to the economy, such as weather conditions or technical change, or by factors internal to the economy, such as fiscal policies, monetary policies, the availability of credit, interest rates, regulatory policies or other impacts on producer incentives. Global conditions may influence the levels of economic activity in various countries. Economic contraction and expa ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Francesco Giavazzi
Francesco Giavazzi (born 11 August 1949 in Bergamo) is an Italian economist who is Professor of Economics at Bocconi University, and a regular visiting professor at MIT. Biography Giavazzi graduated in electrical engineering from the Politecnico di Milano university in 1972 and obtained a PhD in economics from Massachusetts Institute of Technology in 1978 under the supervision of Rudi Dornbusch. In addition to being a professor at Bocconi University in Milan, he is a Research Fellow and a Trustee of Centre for Economic Policy Research (CEPR), a member of the Strategic Committee of Agence France Trésor, and of the Group of Economic Policy Advisers to the President of the European Commission, José Manuel Barroso. During 2004 he was the Houblon-Norman Fellow at the Bank of England. During the D'Alema government (1998–2000) he was a member of the Council of Economic Advisers to the Italian prime minister. He was Director General of the Italian Treasury responsible for debt mana ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Denmark
) , song = ( en, "King Christian stood by the lofty mast") , song_type = National and royal anthem , image_map = EU-Denmark.svg , map_caption = , subdivision_type = Sovereign state , subdivision_name = Danish Realm, Kingdom of Denmark , established_title = History of Denmark#Middle ages, Consolidation , established_date = 8th century , established_title2 = Christianization , established_date2 = 965 , established_title3 = , established_date3 = 5 June 1849 , established_title4 = Faroese home rule , established_date4 = 24 March 1948 , established_title5 = European Economic Community, EEC 1973 enlargement of the European Communities, accession , established_date5 = 1 January 1973 , established_title6 = Greenlandic home rule , established_date6 = 1 May 1979 , official_languages = Danish language, Danish , languages_type = Regional languages , languages_sub = yes , languages = German language, GermanGerman is recognised as a protected minority language in t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Ireland
Ireland ( ; ga, Éire ; Ulster Scots dialect, Ulster-Scots: ) is an island in the Atlantic Ocean, North Atlantic Ocean, in Northwestern Europe, north-western Europe. It is separated from Great Britain to its east by the North Channel (Great Britain and Ireland), North Channel, the Irish Sea, and St George's Channel. Ireland is the List of islands of the British Isles, second-largest island of the British Isles, the List of European islands by area, third-largest in Europe, and the List of islands by area, twentieth-largest on Earth. Geopolitically, Ireland is divided between the Republic of Ireland (officially Names of the Irish state, named Ireland), which covers five-sixths of the island, and Northern Ireland, which is part of the United Kingdom. As of 2022, the Irish population analysis, population of the entire island is just over 7 million, with 5.1 million living in the Republic of Ireland and 1.9 million in Northern Ireland, ranking it the List of European islan ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Crowding Out (economics)
In economics, crowding out is a phenomenon that occurs when increased government involvement in a sector of the market economy substantially affects the remainder of the market, either on the supply or demand side of the market. One type frequently discussed is when expansionary fiscal policy reduces investment spending by the private sector. The government spending is "crowding out" investment because it is demanding more loanable funds and thus causing increased interest rates and therefore reducing investment spending. This basic analysis has been broadened to multiple channels that might leave total output little changed or even smaller. Other economists use "crowding out" to refer to government providing a service or good that would otherwise be a business opportunity for private industry, and be subject only to the economic forces seen in voluntary exchange. Behavioral economists and other social scientists also use "crowding out" to describe a downside of solutions based ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Germany
Germany,, officially the Federal Republic of Germany, is a country in Central Europe. It is the second most populous country in Europe after Russia, and the most populous member state of the European Union. Germany is situated between the Baltic and North seas to the north, and the Alps to the south; it covers an area of , with a population of almost 84 million within its 16 constituent states. Germany borders Denmark to the north, Poland and the Czech Republic to the east, Austria and Switzerland to the south, and France, Luxembourg, Belgium, and the Netherlands to the west. The nation's capital and most populous city is Berlin and its financial centre is Frankfurt; the largest urban area is the Ruhr. Various Germanic tribes have inhabited the northern parts of modern Germany since classical antiquity. A region named Germania was documented before AD 100. In 962, the Kingdom of Germany formed the bulk of the Holy Roman Empire. During the 16th ce ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Vector Autoregression
Vector autoregression (VAR) is a statistical model used to capture the relationship between multiple quantities as they change over time. VAR is a type of stochastic process model. VAR models generalize the single-variable (univariate) autoregressive model by allowing for multivariate time series. VAR models are often used in economics and the natural sciences. Like the autoregressive model, each variable has an equation modelling its evolution over time. This equation includes the variable's lagged (past) values, the lagged values of the other variables in the model, and an error term. VAR models do not require as much knowledge about the forces influencing a variable as do structural models with simultaneous equations. The only prior knowledge required is a list of variables which can be hypothesized to affect each other over time. Specification Definition A VAR model describes the evolution of a set of ''k'' variables, called ''endogenous variables'', over time. Each perio ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Keynesian Economics
Keynesian economics ( ; sometimes Keynesianism, named after British economist John Maynard Keynes) are the various macroeconomic theories and models of how aggregate demand (total spending in the economy) strongly influences economic output and inflation. In the Keynesian view, aggregate demand does not necessarily equal the productive capacity of the economy. Instead, it is influenced by a host of factors – sometimes behaving erratically – affecting production, employment, and inflation. Keynesian economists generally argue that aggregate demand is volatile and unstable and that, consequently, a market economy often experiences inefficient macroeconomic outcomes – a recession, when demand is low, or inflation, when demand is high. Further, they argue that these economic fluctuations can be mitigated by economic policy responses coordinated between government and central bank. In particular, fiscal policy actions (taken by the government) and monetary policy actions (t ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
Journal Of The European Economic Association
The ''Journal of the European Economic Association'' is a peer-reviewed academic journal covering all aspects of economics. It was established in 2003 and is published by Wiley-Blackwell on behalf of the European Economic Association. The current managing editor is Imran Rasul, Professor of Economics at University College London. According to the ''Journal Citation Reports'', the journal has a 2020 impact factor The impact factor (IF) or journal impact factor (JIF) of an academic journal is a scientometric index calculated by Clarivate that reflects the yearly mean number of citations of articles published in the last two years in a given journal, as i ... of 4.583. References External links * English-language journals Publications established in 2003 Economics journals Wiley-Blackwell academic journals Bimonthly journals Academic journals associated with international learned and professional societies of Europe {{econ-journal-stub ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
National Bureau Of Economic Research
The National Bureau of Economic Research (NBER) is an American private nonprofit research organization "committed to undertaking and disseminating unbiased economic research among public policymakers, business professionals, and the academic community". The NBER is well known for providing start and end dates for recessions in the United States. Many chairpersons of the Council of Economic Advisers were previously NBER Research Associates, including the former NBER president and Harvard Professor, Martin Feldstein. The NBER's president and CEO is James M. Poterba of MIT. History The NBER was founded in 1920. Its first staff economist, director of research, and one of its founders was American economist Wesley Clair Mitchell. He was succeeded by Malcolm C. Rorty in 1922. The Russian American economist Simon Kuznets, a student of Mitchell, was working at the NBER when the U.S. government recruited him to oversee the production of the first official estimates of national in ... [...More Info...] [...Related Items...] OR: [Wikipedia] [Google] [Baidu] |
