The Philippine economy has demonstrated notable resilience in recent decades, supported by strong domestic demand and sustained remittance inflows. However, it remains vulnerable to external shocks, particularly those transmitted through capital flow volatility and trade disturbances. This study...

Pro-cyclical fiscal policy is considered harmful. Nonetheless, pro-cyclicality is widespread and the cyclicality of fiscal policy isstrongly heterogenous in advanced economies. This paper investigates how differences in the cyclicality of fiscal policy can be understood through the lens of...

We exploit Germany's temporary three-percentage-point VAT cut in the second half of 2020 to study the spending response to unconventional fiscal policy. We use survey and scanner data on household consumption expenditures and their perceived pass-through of the tax change into prices, and a RANK...

We use confidential loan-level data from the European Central Bank to investigate how changes in the countercyclical capital buffer requirement in Germany affect lending to firms. We find evidence showing that tightening the countercyclical capital buffer leads German banks to reduce the volume...

This paper investigates dynamic relationships between U.S. government expenditure multipliers and the economy's cyclical position from 1949 to 2018 using a Time-Varying Parameter Vector Autoregression (TVP-VAR) model. We challenge the existing literature, which predominantly relies on predefined...

Since 2014, several countries have implemented the Basel III countercyclical capital buffer (CCyB) to enhance the banking sector's resilience against risks arising from excessive credit growth. We analyze the CCyB decision-making process of macroprudential authorities across Europe. Our findings...

Consensus holds that Emerging Markets and Developing Economies (EMDEs) engage in procyclical fiscal behavior. We emphasize that considering conditional responses to macroeconomic shocks is crucial when evaluating fiscal cyclicality, as neglecting this can result in significant biases. This study...

Stimulus transfers are widely used during economic downturns, yet they are often poorly targeted from an economic perspective. I show that political incentives might help explain this discrepancy. I study one of the largest stimulus tax credits in Italy which excluded the poorest individuals and...

In the United States, massive fiscal expansion during the pandemic protected households and helped to return output and unemployment nearly to pre-pandemic expectations by the end of 2021—a sharp contrast with the slow recovery from the previous US recession. The authors document that many...

Since the Global Financial Crisis in 2008-2009, there has been flourishing literature on the role of fiscal policy in stimulating demand when the economy is in a deep recession. Past studies suggest the stimulus may make sense if it is temporary, targeted, and withdrawn quickly. However, since...

This paper considers the role of fiscal policy in New Zealand's macroeconomic stabilisation. New Zealand's macroeconomic framework is characterised by an institutional arrangement whereby monetary policy has the primary responsibility for macroeconomic stabilisation. In contrast, fiscal policy...

With the unexpected onset of COVID-19, governments across the world responded with a range of preventive measures, including the imposition of lockdowns. To mitigate the adverse effects of lockdowns arising from supply chain shocks and employment loss, governments worldwide chose to implement...

During the COVID-19 pandemic, governments in the euro area sharply increased spending while the European Central Bank eased financing conditions. We use this episode to assess how such a concerted monetary-fiscal stimulus redistributes welfare between various age cohorts. Our assessment involves...

En esta investigación, se lleva a cabo un análisis estadístico y econométrico para evaluar los efectos del aumento del gasto público sobre la actividad económica durante la pandemia de enfermedad por coronavirus (COVID-19) en los países de Centroamérica y la República Dominicana, en el...

The article examines historical aspects, general economic logic, and theoretical discussions on the policy of stimulating the economy through increased government appropriations for defense items. It provides a brief overview of empirical studies on economic effects of defense spending in Russia...

During the COVID-19 pandemic, governments in the euro area sharply increased spending while the European Central Bank eased financing conditions. We use this episode to assess how such a concerted monetary-fiscal stimulus redistributes welfare between various age cohorts. Our assessment involves...

Global shocks potentially distort economy's achieved equilibria. Considering the 2020 global crude oil price shock and the 2019 coronavirus disease pandemic, this study proposes an energy and environment integrated general equilibrium model to analyze the economic, energy, and environmental...

Automatic stabilisers are fiscal policy's first line of defence in the face of adverse economic shocks. Automatic stabilisers capture fiscal policy's automatic countercyclical response to the state of the business cycle, and are determined by factors like the progressivity of the tax system, the...

The COVID-19 pandemic led to unprecedented levels of federal aid transfers to state governments. Did this funding increase benefit state incumbents electorally? Identifying the effect of revenue windfalls on economic voting is challenging because whatever conditions led to the influx of cash...

How does fiscal stimulus affect durable goods sales and to what extent does stimulus drive inflation? We study this question in the context of how the unprecedented pandemic fiscal stimulus affected household car purchases and auto prices. Using administrative data on vehicle registrations, we...

Die Konjunkturkomponente des Grundgesetzes bildet neben der Strukturkomponente und der Notlagenverschuldung eine von drei Kreditermächtigungen der Schuldenbremse. Sie befähigt die Haushaltsgesetzgeber von Bund und Ländern zur Verschuldung in Abhängigkeit von der gesamtwirtschaftlichen...

The surge in energy prices in 2022 has been a defining factor behind the increase in euro area inflation. We assess the impact of "unconventional fiscal policy," defined as the set of fiscal measures, possibly expansionary, motivated by a desire to mute the effects of the increase in energy...