The estimated fiscal reaction functions indicate a very low sensitivity of the primary
surplus to cyclical conditions (as measured by the output gap). As noted by the authors,
this suggests that pro-cyclical discretionary policy is offsetting the operation of automatic
stabilizers. There is evidence that such offsetting is asymmetric — i.e. that it mainly
occurs during upturns — thereby introducing a ratchet-effect on debt dynamics, with
significant implication for sustainability (Balassone and Francese, 2004).
57
More intriguing information
1. Computational Experiments with the Fuzzy Love and Romance2. Protocol for Past BP: a randomised controlled trial of different blood pressure targets for people with a history of stroke of transient ischaemic attack (TIA) in primary care
3. Word Sense Disambiguation by Web Mining for Word Co-occurrence Probabilities
4. Spatial agglomeration and business groups: new evidence from Italian industrial districts
5. Popular Conceptions of Nationhood in Old and New European
6. The name is absent
7. A Critical Examination of the Beliefs about Learning a Foreign Language at Primary School
8. IMMIGRATION POLICY AND THE AGRICULTURAL LABOR MARKET: THE EFFECT ON JOB DURATION
9. Luce Irigaray and divine matter
10. What Drives the Productive Efficiency of a Firm?: The Importance of Industry, Location, R&D, and Size