ENGLISH

Trimming the Sails: The Comparative Political Economy of Expansionary Fisal Consolidation, A Hungarian Perspective

By Istvan Benczes

Book information

Year
2008
ISBN
9639776017, 9789639776012, 9781435612372
LCC
HC300.283 .B46 2008
Open Library ID
OL13105854M
Language
english
Format
PDF
Filesize
3 MB (3157462 bytes)
Pages
257\270
Time added
2011-06-04 13:46:07

Description

Fiscal consolidation has significant short term costs which dampen economic growth. This widely shared consensus in literature on political economy makes fiscal adjustment highly unpopular. Benczes conducts a systematic analysis to find out whether it is possible to have fiscal consolidation and experience economic growth even in the short run.The book provides a clear, multidisciplinary and systematic analysis of the relatively new concept of the so-called expansionary fiscal consolidations. This concept suggests that fiscal adjustment can be in trade-off with economic growth if certain conditions are met. But why do only a few countries and only at certain times experience the expansionary effects, while others not at all? The necessary conditions and circumstances have been totally neglected in the literature, or analyzed only partially at best.Having evolved a theoretical framework, it is tested on a difficult case: Hungary, which has had the highest deficit in the European Union. The main question was whether Hungary has a chance to experience short term growth effects in times of adjustment.

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