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Fiscal Policy Stance Reaction to the Financial/Economic Crisis in the EMU: The Case of Slovenia

Jernej Mencinger ; Faculty of Administration, University of Ljubljana, Ljubljana, Slovenia
Aleksander Aristovnik ; Faculty of Administration, University of Ljubljana, Ljubljana, Slovenia


Puni tekst: engleski pdf 227 Kb

str. 17-30

preuzimanja: 597

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Sažetak

The article evaluates the current economic crisis’ impact on changes in the adoption of fiscal policy measures for 16 euro-area countries in the 2004–2012 period and compares those changes with fiscal policy measures introduced in Slovenia. In general, the results suggest that the adopted fiscal policy measures in most euro-area countries were more expansionary in the period before the current economic crisis started. The evaluation of the fiscal stance in Slovenia suggests expansionary and pro- cyclical fiscal behaviour during the 2005–2008 period, whereas the response of the fiscal authorities in Slovenia in 2011 and 2012 due to fiscal consolidation was more restrictive and pro-cyclical. Finally, we emphasize that inconsistent fiscal policy without structural reforms also being carried out may lead to a further deterioration of the fiscal position and macroeconomic situation of euro-area countries, including during a period of cyclical recovery.

Ključne riječi

fiscal stance; economic crisis; cyclical adjusted balance; output gap; EMU; Slovenia

Hrčak ID:

130320

URI

https://hrcak.srce.hr/130320

Datum izdavanja:

1.12.2014.

Posjeta: 1.445 *