Political models of macroeconomic policy and fiscal reforms by Alberto Alesina

Cover of: Political models of macroeconomic policy and fiscal reforms | Alberto Alesina

Published by Country Economics Dept., World Bank in Washington, DC (1818 H St. NW, Washington 20433) .

Written in English

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  • Fiscal policy.

Edition Notes

Book details

StatementAlberto Alesina.
SeriesPolicy research working papers ;, WPS 970
LC ClassificationsHG3881.5.W57 P63 no. 970
The Physical Object
Pagination36 p. ;
Number of Pages36
ID Numbers
Open LibraryOL1354181M
LC Control Number92245775

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Political Models of Macroeconomic Policy and Fiscal Reforms* Alberto Alesina Harvard University, CEPR and NBER August Revised: November *Prepared for the Haggard-Webb World Bank Political-Economy project.

I am grateful to several members of the group, and especially to Stephan Haggard and Steve Webb, for very useful comments. Downloadable. The author explains how recent developments in political economics improve our understanding of macroeconomic policy - especially the timing, design, and likelihood of stabilization's success through monetary and fiscal reform.

The author reviews the literature on political business cycles and emphasizes several issues involving the relationship between the timing of elections. Alesina, Alberto. “Political Models of Macroeconomic Policy and Fiscal Reforms.” Voting for Reform, edited by S Haggard and S Webb. Oxford, UK: Oxford University by: Political models of macroeconomic policy and fiscal reform.

By Alberto Alesina. Get PDF (2 MB) Abstract. The author explains how recent developments in political economics improve our understanding of macroeconomic policy - especially the timing, design, and likelihood of stabilization's success through monetary and fiscal reform Author: Alberto Alesina.

Political models of macroeconomic policy and fiscal reform. Eduardo Wiesner's book makes an important contribution to the understanding of development by blending together the interdependent issues of macroeconomic performance and volatility, equity and distributive justice, fiscal deficits and the redistributive effectiveness of social public expenditures and the demand for the 'right' institutions and for policy reform in Latin s: 2.

"Drazen's book gives an excellent account of the political dimension of macroeconomic policy. With its careful attention to methodological issues, thorough and balanced presentation of the literature, and clear exposition and perceptive evaluation of models, this book will be valuable both as a reference volume for researchers and a textbook.

Volume 1 examines problems of policy credibility caused by incentives to deviate from announced policy. Volume 2 looks at feasibility problems caused by political pressures generated by the electoral process, the politics of the public debt, issues of the redistribution of wealth, and conflict over the need for economic s: 1.

About the Book. Macroeconomics: Theory, Markets, and Policy provides complete, concise coverage of introductory macroeconomics theory and policy. It examines the Canadian economy Political models of macroeconomic policy and fiscal reforms book an economic system, and embeds current Canadian institutions and approaches to monetary policy and fiscal policy within that system.

Further, he illustrates how heterogeneity of interests is crucial in every part of political economy. Drazen's approach allows innovative treatment--using rigorous economic models--of public goods and finance, economic growth, the open economy, economic transition, political business cycles, and all of the traditional topics of macroeconomics.

Part I deals with monetary policy in a simply Phillips curve model: it covers credibility issues, political business cycles, and optimal design of monetary institutions. Part II deals with fiscal policy in a dynamic general equilibrium set up: the main topics here are credibility of tax policy, and political.

Chapter 2 uses the view that politicians favor the interests of specific groups of voters to explain political budget cycles in a model with rational voters. Voters use past fiscal policy to learn information about which types of spending the incumbent is likely to favor if re-elected.

Further, he illustrates how heterogeneity of interests is crucial in every part of political economy. Drazen's approach allows innovative treatment--using rigorous economic models--of public goods and finance, economic growth, the open economy, economic transition, political business cycles, and all of the traditional topics of s: 7.

A government affects the economy in many ways, including through fiscal policy, the way the government taxes its population and spends its resources, and through monetary policy and regulation, which is covered later. All governments require money to operate, so they raise money through taxation.

creates a political friction. The theory combines the economic and political models to provide a positive account of the simultaneous determination of fiscal policy and unemployment.

The political model underlying the theory follows the approach in our previous work (Battaglini and Coate). The economic model is novel to this paper. One of the most striking macroeconomic developments during the last three decades is the rise and persistence of large fiscal deficits in a number of countries.

Despite recent major fiscal reforms around the world, many countries suffer from recurrent large fiscal imbalances that often reflect lack of fiscal.

The book is divided into 14 chapters, each examining a different area of economic policy: Monetary policy, fiscal policy, tax policy, international finance and. In economics and political science, fiscal policy is the use of government revenue collection (taxes or tax cuts) and expenditure (spending) to influence a country's economy.

The use of government revenues and expenditures to influence macroeconomic variables developed as a result of the Great Depression, when the previous laissez-faire approach to economic management became unpopular.

roeconomic performance and reform. I argue that the macroeconomic and fiscal imbalances experienced by these federal nations are, in part, structurally determined by their de-volved political and fiscal institutions that create incentives for subnational governments to avoid the political costs of fiscal adjustment.

Political business cycle, fluctuation of economic activity that results from an external intervention of political term political business cycle is used mainly to describe the stimulation of the economy just prior to an election in order to improve prospects of the incumbent government getting reelected.

Despite numerous attempts to establish their existence, empirical evidence of. A1 Introduction. As explained in Chap. 1, Japan’s current fiscal situation is the weakest of all the G7 phenomenon can partly be attributed to a slowdown in economic growth since the s and partly to increases in public works and social welfare spending owing to the adoption of Keynesian fiscal measures in an aging society.

The implicit assumption underlying the Keynesian fiscal revolution, according to Buchanan, was that economic policy would be made by wise men, acting without regard to political pressures or opportunities, and guided by disinterested economic technocrats.

He argued that this was an unrealistic assumption about political, bureaucratic and. Monetary Policy vs. Fiscal Policy: An Overview. Monetary policy and fiscal policy refer to the two most widely recognized tools used to influence a nation's economic activity.

voters and economic agents who could not be systematically fooled. However, after a period of relative neglect a second phase of politico-economic models emerged in the mids. These models capture the insights emanating from and including the rational expectations hypothesis in macroeconomic models.

elected officials and political parties might collectively "hijack" fiscal policy for political purposes, cause inappropriate changes in AD, and thereby CAUSE economic fluctuations (stimulate the economy using expansionary fp before election and then dampen excessive AD after the election with contractionary fp).

To distinguish among progressive, proportional, and regressive taxes, and discuss recent tax issues and reforms. To introduce fiscal policy, explain its mechanics, and differentiate between discretionary and automatic fiscal policy.

To define a surplus, balanced, and deficit budget, and identify the economic. Plans Emerging for COVID Vaccine Allocation. While the end goal is to offer COVID vaccines to the entire U.S. population, the federal government, states and local jurisdictions want to be sure it goes first to those who need it most.

This page contains the complete book Macroeconomic Policy in a World Economy in pdf format for viewing, downloading, or printing. The book describes the theoretical form and the empirical estimation of a forward-looking multicountry model (sometimes called the Taylor Multicountry Model).

Economic Structural Adjustment Programme (ESAP) era () The UNDP () points out that this is a period of economic liberalisation and was meant to: move away from import substitution to an open market driven economy; implement monetary policy reform which included market based interest rates and liberalisation of the.

Current macroeconomics, the ‘New Consensus Macroeconomics’, downgrades significantly the role of fiscal policy as a stabilisation instrument of macroeconomic policy. This paper argues that fiscal policy deserves to be properly upgraded.

More recent theoretical and empirical developments on the fiscal policy front are closely examined. This examination reveals that these. Policy making was interventionist and social welfare oriented.

During the second decade when the state was in economic crisis, policy interventions were mainly contractionary and low note on local ownership and social acceptance. Third decade policymaking was under highly untenable social, political, and economic conditions.

Political economists study how economic theories such as capitalism, socialism, and communism work in the real its root, any economic theory is.

A Political Recommitment to Systemic Economic Reform. Beyond specific policy support for China’s struggling private sector, as well as a fresh commitment to financial market liberalization, has come a broader policy response to a slowing economy - namely the re-embrace of “institutional” economic reform.

The Federal Reserve can adjust monetary policy more quickly than the president and Congress can adjust fiscal policy. Because most contractions in economic activity last for only a few quarters, a prompt policy response is crucial.

Yet fiscal policy in practice responds slowly to changes in economic conditions: it takes time first to enact a. The usual goals of both fiscal and monetary policy are to achieve or maintain full employment, to achieve or maintain a high rate of economic growth, and to stabilize prices and establishment of these ends as proper goals of governmental economic policy and the development of tools with which to achieve them are products of the 20th century.

Japanese Prime Minister Shinzo Abe was elected on Dec. 26,and promised a series of monetary policy, fiscal policy, and economic reforms designed to resolve Japan's macroeconomic reforms have been coined "Abenomics" by. Home Policy Research Working Papers The Mini-Integrated Macroeconomic Model for Poverty Analysis: A Framework for Analyzing the Unemployment and Poverty Effects of Fiscal and Labor Market Reforms No Access Policy Research Working Papers 21 Jun Search the world's most comprehensive index of full-text books.

My library. Book Description: This new volume situates current debates about economic reform in Germany in illuminating historical and structural contexts.

Showing how economic reform has become the central issue on the German political agenda, raising contentious issues of policy management and posing deeper questions about political beliefs and identities. the politics of health policy the us reforms Posted By Paulo Coelho Ltd TEXT ID db Online PDF Ebook Epub Library process for promoting policy change and the risks of underestimating political challenges this article first reviews three political themes about the policy reform.

In addition to fiscal policy, a government affects the economy through its monetary policy, which controls the amount of money, or currency, in the is like any other commodity: When there is more of it, the price of money—that is, interest rates—goes down; when there is less money in the economy, its price goes up.The nordic model has performed well in the past 15 The nordic model has been conducive to good economic performance 16 Major challenges to the nordic model give rise to an urgent need for reform 19 Many proposed “solutions” are unworkable 21 An effective wage bargaining process is .Fiscal Policy and the AD/AS Model Discretionary fiscal policy refers to the deliberate manipulation of taxes and government spending by Congress to alter real domestic output and employment, control inflation, and stimulate economic growth."Discretionary" means the changes are at the option of the Federal government.

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