Impact on the Banking SystemsV. The main objective is to compare macro-financial conditions and policies in the run-up to the crisis as well as to compare the policy responses to it, so as to highlight, inter alia, possible country-specific constraints. The views expressed in the paper are solely those of the author s. The Maastricht Treaty has granted to Member States exclusive competence on fiscal policy, but in the near future this competence will be shared with the European Commission. They have actively engaged in building new and where appropriate transforming existing economic, political, social and legal institutions as part of the transition to democratic and market-oriented regimes in the European Union neighbourhood.
It uses this dataset to describe recent trends in the composition of public debt in developing countries and discusses the reasons for these trends. In broad terms over the past two decades or so, governments in the Western Balkans have been transitioning from socialist regimes, centrally planned economies, and the legacy of armed conflicts. This paper will also hint at the fact that an abrupt fiscal adjustment as required by the Fiscal Compact could compromise the potential for future economic growth and the catching up objectives of the New Member States. An ideal rule would typically assure fair distribution of utility over generations, while allowing to maintain the sustainable fiscal position. We found that structural balance rule and expenditure rule act counter-cyclically in the whole simulation period, but at the same time the pace at which they stabilize public debt is quite slow.
In the final part of the paper, we briefly touch upon perhaps the most sensitive and controversial question arising in the context of the U. While common themes emerge, such as corruption, weak tax administration and the lack of availability of skills, there is a clear gap between those countries in the region that have joined, or are about to join, the European Union, and the remaining countries. . The Use of Macroprudential Measures; C. Upon quoting, please refer to the source.
One rule would limit nominal expenditure growth, with a correction mechanism to guard against revenue slippages and other shocks. Fast Economic Growth in a Low Inflation Environment; B. Section 3 contains an explanation of the data and methodology. The most dramatic example of this evolution is in the office machines sector: in 2006, China provided 46 percent of total U. These moves exacerbated external vulnerabilities and compromised the ability to discretionarily use the fiscal instrument in a countercyclical fashion.
The Western Balkan economies have low competitive position in the European and world market but this crisis has even further eroded their position. Progresses on Fiscal Consolidation; 2. The paper is divided into six sections. In this paper we study the consequences of the demand and supply shocks for Poland under alternative policy scenarios. This, among others, could cause a decline in public investment and slowdown of potential economic growth.
Second, enhancing domestic sources of bank credit funding would contribute to the mitigation of external vulnerabilities and make the domestic financial system more resilient to global financial shocks. These results could be interpreted as evidence of the possible role played by implicit government guarantees in the international interbank market, which lower the incentives for participants to monitor counterpart risk very closely. Strengthening the fiscal framework, including by introducing a numerical fiscal rule, could help achieve this objective. Our cross-country analysis covers 59 advanced and emerging countries for the 1990-2009 period. While sharing a common pre-crisis pattern of strong capital inflows and robust growth, a key difference in the conduct of macroeconomicpolicies is that some countries adopted expansionary and procyclical fiscal policies. This paper analyzes the impact of the global crisis on six South-Eastern European countries. You can help correct errors and omissions.
Any reprinting or dissemination of this material requires previous acceptance of the Ministry of Finance in Poland. To link different versions of the same work, where versions have a different title,. Pre-Crisis Policy Responses to Capital Inflows and Rising VulnerabilitiesA. The treaty provides for the continued existence of Bosnia and Herzegovina within its previous internationally recognized borders and its governance under a central state government with very limited powers. Articles Sorry, no citations of articles recorded. In fact, while between 1996 and 2001 China accounted for 23 percent of the increase in the overall U.
The preliminary stage dates back to the 1980s and early 1990s, and was mainly related to the Fund's research and technical assistance activities within the process of monetary and financial deregulation embraced by several member countries. The empirical estimates capture the upward shift in public debt growth from the onset of the Great Recession. We highlight a crucial innovation to these criteria, namely that, for the first time, they now explicitly take account of the risk of international systemic spillovers. The main objective is to compare macro-financial conditions and policies in the run-up to the crisis as well as to compare the policy responses to it, so as to highlight, inter alia, possible country-specific constraints. These moves exacerbated external vulnerabilities and compromised the ability to discretionarily use the fiscal instrument in acountercyclical fashion. An increase in the euro area's shadow interest rate triggers a broad-based and persistent output decline abroad, especially in central eastern and southeastern European economies.
In this context, concerns have arisen that poor government policies and inade-quate donor coordination have reduced the effectiveness of such assistance. Over the last twenty years, numerous international assistance programmes have aimed to provide support for reconstruction and assist the policy reform process in the Western Balkans. On this basis, the paper argues that expansionary fiscal policy in Croatia would not be effective and would undermine fiscal sustainability and financial stability. While sharing a common pre-crisis pattern of strong capital inflows and robust growth, a key difference in the conduct of macroeconomic policies is that some countries adopted expansionary and procyclical fiscal policies. The compromise reached at the European Council held in Brussels, on the 9th of November 2011, includes decisions that significantly change the European fiscal policy. Widening Current Account Deficits and Deteriorating Competitiveness; Boxes; 1.