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Non-Keynesian Effects of Fiscal Consolidation [electronic resource] : An Analysis with an Estimated DSGE Model for the Hungarian Economy / Szilárd Benk and Zoltán M. Jakab = Les effets non-Keynésiens de l'assainissement budgétaire : une analyse avec un modèle DSGE estimé pour l'économie hongroise / Szilárd Benk et Zoltán M. Jakab.

Author/Creator:
Benk, Szilárd., author
Publication:
Paris : OECD Publishing, 2012.
Format/Description:
Government document
Book
1 online resource (50 pages)
Series:
OECD Economics Department Working Papers 18151973 ; no.945.
OECD Economics Department Working Papers 18151973 ; no.945
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Other Title:
Les effets non-Keynésiens de l'assainissement budgétaire une analyse avec un modèle DSGE estimé pour l'économie hongroise
Subjects:
Economics.
Local subjects:
Hungary. (search)
Summary:
Using an estimated DSGE model for Hungary, the paper identifies the possible non-Keynesian channels through which a fiscal consolidation may manifest as expansionary. Simulations show that fiscal consolidation policies are typically contractionary. Nevertheless, taking into account some specific features of the Hungarian economy, there is a possibility that expansionary effects arise. These effects may take the form of a drop in interest rate risk premium or favourable balance sheet effects through the appreciation of the currency. However, the credibility of fiscal consolidation is key in achieving positive output effects. A non-credible consolidation is unlikely to expand output, regardless of the assumptions regarding the specific features of the economy, and regardless of the composition of a consolidation package.
Notes:
Title from title screen (viewed May 1, 2017).
Contributor:
Jakab, Zoltán.
SourceOECD (Online Service)
Access Restriction:
Restricted for use by site license.