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Effects of Fiscal Consolidation in the Czech Republic
Author: Stephen Snudden and Mr. Vladimir Klyuev
Series:
IMF Working Papers
Volume/Issue:
Volume 2011: Issue 065
Language:
English
Publication Date:
01 Mar 2011
DOI:
https://doi.org/10.5089/9781455228058.001
ISBN:
9781455228058
ISSN:
1018-5941
Pages:
65
Keywords:
WP; aggregate demand; consumption tax; current account; present value
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper 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 paper evaluates the impact on the economy of tightening measures envisaged in the 2011 budget. Third, the paper 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".
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund