Vecchi E Nuovi Problemi Nell’Impiego Delle Politiche Di Bilancio (Old and New Problems in the Use of Fiscal Policy) (in Italian)
Moneta e Credito, Vol. 64, No. 253, pp. 53-74, 2011
22 Pages Posted: 18 May 2011 Last revised: 1 Apr 2014
Date Written: May 10, 2011
Abstract
The global financial and economic crisis has reopened the debate on the role, the efficacy and limits of fiscal policies in sustaining aggregate demand. At the same time, the crisis has worsened the prospects of unsustainability of public debt in some countries. In order to conciliate fiscal rules for stabilizing the economy and measures aimed at reducing public debt, it seems necessary to consider national specificities during the crisis. Economic areas and single countries within them are heterogeneous with respect to the timing and depth of their fiscal unbalances.
Consideration for the increasingly relevant linkages between public budgets and the disequilibria accumulated in other sectors of the economy makes it scarcely credible to pursue deficit reduction strategies on the basis of quantitative, rigid and uniform rules to be applied without regard for the deep differences between countries highlighted by the crisis.
Note: Downloadable document is in Italian
Keywords: financial crisis, public debt, fiscal policy, primary surplus
JEL Classification: E52, G01, H62
Suggested Citation: Suggested Citation