The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?

The deep recession which hit the world economy towards the end of 2008 inducedmassive, internationally-coordinated policy responses, both monetaryand fi scal. In this paper we examine public fi nance developments in Germanyand Italy in 2009. We fi nd that the larger stimulus measures adopted inGerma...

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Autores principales: Hamburg, Britta, Momigliano, Sandro, Manzke, Bernhard, Siviero, Stefano
Formato: Artículo revista
Lenguaje:Inglés
Publicado: Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba. 2010
Materias:
E62
H30
Acceso en línea:https://revistas.unc.edu.ar/index.php/REyE/article/view/4108
Aporte de:
id I10-R10article-4108
record_format ojs
institution Universidad Nacional de Córdoba
institution_str I-10
repository_str R-10
container_title_str Revistas de la UNC
language Inglés
format Artículo revista
topic discretionary fiscal policy
automatic stabilizers
Germany
Italy
E62
H30
política fiscal discrecional
estabilizadores automáticos
Alemania
Italia
E62
H30
spellingShingle discretionary fiscal policy
automatic stabilizers
Germany
Italy
E62
H30
política fiscal discrecional
estabilizadores automáticos
Alemania
Italia
E62
H30
Hamburg, Britta
Momigliano, Sandro
Manzke, Bernhard
Siviero, Stefano
The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?
topic_facet discretionary fiscal policy
automatic stabilizers
Germany
Italy
E62
H30
política fiscal discrecional
estabilizadores automáticos
Alemania
Italia
E62
H30
author Hamburg, Britta
Momigliano, Sandro
Manzke, Bernhard
Siviero, Stefano
author_facet Hamburg, Britta
Momigliano, Sandro
Manzke, Bernhard
Siviero, Stefano
author_sort Hamburg, Britta
title The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?
title_short The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?
title_full The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?
title_fullStr The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?
title_full_unstemmed The Reaction of Fiscal Policy to the Crisis in Italy and Germany: Are they really polar Cases in the European Context?
title_sort reaction of fiscal policy to the crisis in italy and germany: are they really polar cases in the european context?
description The deep recession which hit the world economy towards the end of 2008 inducedmassive, internationally-coordinated policy responses, both monetaryand fi scal. In this paper we examine public fi nance developments in Germanyand Italy in 2009. We fi nd that the larger stimulus measures adopted inGermany mostly compensated a more favourable underlying trend; overall,the cyclically-adjusted primary balances worsened by a similar extent in thetwo countries. We further estimate the automatic stabilisers to have had animpact on the defi cit of similar magnitude in Germany and Italy. We thenassess, on the basis of counterfactual simulations, to which extent discretionarymeasures and automatic stabilizers were able to mitigate the downturnin the two countries. Our results show that the public sector contrastedthe fall in real GDP in 2009 by more than 2 percentage points in Germany andby 1 per cent in Italy. The difference in the stabilizing effect of the two public sectors refl ects not only the different size of the stimulus measures, but also thehigher fi scal multipliers associated with Germany.
publisher Instituto de Economía y Finanzas. Facultad de Ciencias Económicas. Universidada Nacional de Córdoba.
publishDate 2010
url https://revistas.unc.edu.ar/index.php/REyE/article/view/4108
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