Deflation and Public Finances

Deflation and Public Finances
Author: Mr.Nicolas End
Publisher: International Monetary Fund
Total Pages: 41
Release: 2015-07-28
Genre: Business & Economics
ISBN: 1513539698

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This paper examines the impact of deflation on fiscal aggregates. With deflation relatively rare in modern history, it relies mostly on the historical records, using a dataset panel covering 150 years and 21 advanced economies. Empirical evidence shows that deflation affects public finances mostly through increases in public debt ratios, reflecting a worsening in interest rate–growth differentials. On average, a mild rate of deflation increases public debt ratios by almost 2 percent of GDP a year, this impact being larger during recessionary deflations. Using a simulation model that accounts for composition effects and price expectations, we also find that, for European countries, a 2 percentage point deflationary shock in both 2015 and 2016 would lead to a deterioration in the primary balance of as much as 1 percent of GDP by 2019.

Deflation and Public Finances

Deflation and Public Finances
Author: Nicolas End
Publisher:
Total Pages:
Release: 2015
Genre: Deflation (Finance)
ISBN: 9781513566818

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Currency Inflation and Public Debts

Currency Inflation and Public Debts
Author: Edwin Robert Anderson Seligman
Publisher:
Total Pages: 108
Release: 1921
Genre: Currency question
ISBN:

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Deflation

Deflation
Author: Chris Farrell
Publisher: Harper Collins
Total Pages: 246
Release: 2004-05
Genre: Business & Economics
ISBN: 0060576456

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Deflation is one of the most feared terms in economics. It immediately conjures visions of abandoned farms and idle factories, streams of unemployed workers standing in breadlines. So when Federal Reserve Board Chairman Alan Greenspan started talking openly in 2003 about his fears of deflation, it sent waves of shock through the business press and the public. Many feared that the United States was entering a period of prolonged slump after a pronounced boom, much like Japan experienced throughout the 1990s. Others worried that a sustained fall in prices would have a cataclysmic impact on our nation's overhang of consumer debt. Yet another camp blamed low-wage manufacturing countries like China and high-volume retailers like Wal-Mart for becoming the engines of relentless deflation. In this important new book, Chris Farrell explains that deflation need not presage a collapse. In the process he gives a new way of looking at our economic and our financial futures. More than an introduction to the subject, Farrell points out that deflation has always been a fundamental aspect of the business cycle. For much of the 20th century, deflation had vanished from the economic scene, but its return is no cause for panic. Instead, properly understood, deflation presents opportunities and pitfalls in equal measure for businesses, corporations, the government, and our national economy.

Inflation, Deflation, and Unemployment

Inflation, Deflation, and Unemployment
Author: LAURA. LORIA
Publisher: Encyclopaedia Britannica
Total Pages: 61
Release: 2018-07-01
Genre: Juvenile Nonfiction
ISBN: 1538302667

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The Economy can be an intimidating subject for some readers. They might feel that it's too complicated to understand, or that it's just for adults. This illuminating volume explains facets of the economy and how they are measured in plain language. It offers age-appropriate, real-life illustrations of the concepts to help middle-school readers relate on a personal level. Historical and current examples are cited throughout the text, which support curricular standards outlined in the C3 Framework for Social Studies State Standards.

How Deflation Affects You

How Deflation Affects You
Author: Barbara Gottfried Hollander
Publisher: The Rosen Publishing Group, Inc
Total Pages: 82
Release: 2012-12-15
Genre: Juvenile Nonfiction
ISBN: 1448883512

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Readers discover what deflation is in global and national economies through accessible, easy-to-understand terms. They also learn how deflation is measured as well as how rises and falls in the Gross Domestic Product describe expansions and downturns in the economy. Japan’s “lost decade” of the 1990s is used as an international example to illustrate how deflation affects people. Students investigate the U.S. economy by learning about fiscal policy, deflation, and economic booms and downturns, monetary policy, and liquidity traps. They also learn about “bad deflation” and “good deflation.” This straightforward book gives readers a thorough grounding in what happens to their purchasing power with deflation, and how deflation influences their spending decisions, investment choices, employment, income, and loans.

Deflation and Liberty

Deflation and Liberty
Author: Jörg Guido Hülsmann
Publisher: Ludwig von Mises Institute
Total Pages: 48
Release: 2008
Genre: Deflation (Finance)
ISBN: 1610164881

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Deflation is not inherently bad. It creates winners and losers. It also puts a temporary break on the concentration of power in the hands of government and in particular the executive branch. In short, inflation is potentially a great liberating force.

Deflation

Deflation
Author: Mr. Taimur Baig
Publisher: International Monetary Fund
Total Pages: 66
Release: 2003-06-30
Genre: Business & Economics
ISBN: 1451932510

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Deflation can be costly and difficult to anticipate, and concerns of a generalized decline in prices in both industrial and emerging market economies have increased recently. This paper investigates the causes and consequences of deflation, the risk of deflation globally and in individual countries, and policy options. The authors discuss issues related to the measurement, determinants, and costs of deflation and examine previous episodes of deflation. They compute an index of deflation vulnerability, which they apply to the 35 largest industrial and emerging market economies. Finally, the paper offers several policy options for protecting against deflation and for coping with it should it strike.

How to Fight Deflation in a Liquidity Trap

How to Fight Deflation in a Liquidity Trap
Author: Mr.Gauti B. Eggertsson
Publisher: International Monetary Fund
Total Pages: 43
Release: 2003-03-01
Genre: Business & Economics
ISBN: 1451848587

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I model deflation, at zero nominal interest rate, in a microfounded general equilibrium model. I show that deflation can be analyzed as a credibility problem if the government has only one policy instrument, money supply carried out by means of open market operations in short-term bonds, and cannot commit to future policies. I propose several policies to solve the credibility problem. They involve printing money or nominal debt and either (1) cutting taxes, (2) buying real assets such as stocks, or (3) purchasing foreign exchange. The government credibly "commits to being irresponsible" by using these policy instruments. It commits to higher money supply in the future so that the private sector expects inflation instead of deflation. This is optimal, since it curbs deflation and increases output by lowering the real rate of return.

An Introduction to Public Finance (Fiscal Economic)

An Introduction to Public Finance (Fiscal Economic)
Author: Bose D./ Ganesan S. & Marimuthu A.
Publisher: S. Chand Publishing
Total Pages: 192
Release:
Genre: Business & Economics
ISBN: 9385676091

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Provides a precise & concise exposition of the principles & theories • Written in a lucid & easy to understand language • Incorporates chapter-end exercises in the form of objective type questions including questions asked in different competitive examinations such as Indian civil services, Indian economic service, UGC tests for JRF & Lectureship, etc. these exercises will provide students with an idea of the pattern of questions which are likely to be set in different examination. • Also covers most of the parts of the syllabi of autonomous colleges of Indian universities.