Fiscal Adjustment

A fiscal adjustment is a reduction in the government primary budget deficit, and it can result from a reduction in government expenditures, an increase in tax revenues, or both simultaneously.

There is no a clear consensus about the definition of fiscal adjustment, but it is commonly understood as a process, instead of as a status: governments run fiscal deficits, fiscal surpluses or balanced budgets, and the process from a budget deficit to a sustained period of balanced budget is a fiscal adjustment.

There are two significant features in any fiscal adjustment: the duration of the process, usually measured in years, that defines the intensity of the effort; and the composition of the adjustment, measured as the proportion of the adjustment obtained from expenditure cuts compared to the proportion gained from tax increases.

Read more about Fiscal Adjustment:  Fiscal Adjustments in Europe, Fiscal Adjustments in The United States, Fiscal Adjustments in Latin America, Additional Evidence

Other articles related to "fiscal, fiscal adjustment, fiscal adjustments":

Malcolm Knight - Publications
... "Economic Interactions and the Fiscal Policies of Major Industrial Countries 1980 1988." With P.R ... "Fiscal Policies, Net Saving, and Real Exchange Rates The United States, the Federal Republic of Germany, and Japan."With P.R ... In International Aspects of Fiscal Policies, 21-71, edited by J.A ...
Fiscal Adjustment - Additional Evidence
... research by economists at this institution, expenditure-based fiscal adjustments were more stable and durable than revenue-based strategies during the 1980s in Latin American and ... economist, Robert Mundell, who stated that "fiscal discipline is a learned behavior", there is no economic reason to tie the hands of politicians to tight constantly balanced ... the United States, Germany, France or Italy, carried out neo-Keynesian fiscal policies during the recession of 2002 ...

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