Can government spending meet expectations?

New demands and expectations The latest Fiscal Monitor report warns that more will be expected from fiscal actions in the future: The global economy is undergoing major transformations, including a productivity slowdown, technological change, and global economic integration. This creates new demands for public policies to facilitate these transformations, while…

Fiscal arithmetic

I just came across this wonderfully concise explanation of the debt growth formula on Quora: Notation: D = debt, in % of GDP r = real interest rate, in % g = real growth rate of the economy pd = primary deficit of the government budget, in % of GDP. Primary deficit does not include interest expenditures.…

Pubic concern about government debt

The share of people who are very concerned about public debt varies a lot across countries. The magnitude of public concern for selected is show in this chart: Data: Pew Global Attitudes survey, 2014 I posted the spreadsheet with additional countries on Github. Looking at the EU only, the deficit…

Taxing Apple - an update

Australia warns companies against trying to avoid its ‘Google tax’ The impact of the UK’s diverted profits tax, the 25 per cent levy introduced by George Osborne, the former chancellor, in April last year, was questioned by many commentators in January when it emerged that it did not play…

Economic outlook, mid-2016

G-7 meeting (recap) G-7 Leaders Differ on Risks to Global Growth - WSJ Mr. Obama noted the recovery taking place in the U.S. and some progress in the European economy, saying an agreement reached Wednesday on the Greek debt crisis should help. He said G-7 leaders “emphasized the importance…

Fiscal policy papers

Selected references on fiscal issues Julio Escolano: A Practical Guide to Public Debt Dynamics, Fiscal Sustainability, and Cyclical Adjustment of Budgetary Aggregates The IMF Staff Report on Fiscal Policy and Long-Term Growth: "Fiscal policy is an effective tool for supporting growth. While it is difficult to disentangle the impact…