Fiscal Impulses and their Fiscal Impact

May 1, 1992

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Format: Chicago

Sheetal K. Chand Fiscal Impulses and their Fiscal Impact, (USA: International Monetary Fund, 1992) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Fiscal impulse measures are used in the WEO and elsewhere to indicate the changing impact of the budget on the economy. Such measures are intended to provide more accurate indications of whether the budget is becoming more or less expansionary than would just observing moments in the actual budget balance. However, they have been criticized for lacking an analytical rationale. This paper uses a simple framework to show that the fiscal impulse measure can be analytically derived. While this removes one source of criticism, the measure, nevertheless, should be used carefully when making inferences of fiscal impact.

Subject: Budget planning and preparation, Consumption, Expenditure, Fiscal policy, Macro-fiscal analysis, National accounts, Public financial management (PFM)

Keywords: Aggregate demand, Aggregate demand impact, Budget planning and preparation, Consumption, Consumption function, Deficit measure, Effect of the budget, Government expenditure, Government expenditures g, Impulse measure, Inflation-adjusted deficit, Macro-fiscal analysis, Output effect, Pump priming, Real rate of interest, Revenue effect, Revenue response, WP

Publication Details

Pages:

18
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1992/038
Stock No:

WPIEA0381992
ISBN:

9781451977530
ISSN:

1018-5941

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