The Potential Contribution of Fiscal Policy to Rebalancing and Growth in New Zealand

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Price:  $18.00

Author/Editor: Werner Schule
Release Date: © May, 2010
ISBN : 978-1-45520-087-0
Stock #: WPIEA2010128
English
Stock Status: Available

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Description

Simulations with the Fund’s GIMF model show that raising government savings in New Zealand permanently by 1 percent of GDP is likely to improve the current account balance by about ½ percent of GDP. The way government savings are achieved matters for GDP but little for the current account. However, results are sensitive to changes in the risk premium. Fiscally neutral changes in taxes and expenditures can raise output in the long run.

Taxonomy

Balance of payments , Current account , Economic policy , Fiscal policy




More publications in this series: Working Papers


More publications by: Werner Schule