FISCAL POLICY IN CEE COUNTRIES. EVIDENCE FROM CZECH REPUBLIC AND ROMANIA

• Authors: Caraiani Petre
• Languages of publication: EN

Abstracts

EN

The author investigates the fiscal policy in CEE countries using evidence from two of the most important economies, Czech Republic and Romania. A small open economy model with a Taylor fiscal rule is estimated on quarterly data for these countries. He explores the potential of counter-cyclical fiscal policy in the context of the on-going financial crisis, the reaction of the fiscal policy to negative demand shocks or to a more relaxed monetary policy, as well as the impact of fiscal shocks. There are evidences that fiscal shocks during the last years behaved in a pro-cyclical way and it appears that the countercyclical potential of fiscal policy during the financial crisis remained largely unused.

Keywords

EN

SMALL OPEN ECONOMY; CEE COUNTRIES; FISCAL POLICY; MONETARY POLICY; CZECH REPUBLIC; ROMANIA

• Publisher: Institute of Slovak and World Economics and Institute for Forecasting, Slovak Academy of Sciences
• Journal: Ekonomický časopis (Journal of Economics)
• Year: 2011
• Volume: 59
• Issue: 1
• Pages: 79 – 104

Contributors

author

Caraiani Petre

• Romanian Academy, Institute for Economic Forecasting, 13 Septembrie nr. 13, sector 5, RO – 050711 Bucharest, Romania