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

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 1\2 percent of GDP. The way government savings are achieved matters for GDP but little for the current account. Ho...

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Bibliographic Details
Main Author: Schule, Werner
Format: Journal
Language:English
Published: Washington, D.C. : International Monetary Fund, 2010.
Series:IMF Working Papers; Working Paper ; No. 2010/128
Online Access:Full text available on IMF
Description
Summary: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 1\2 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.
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Physical Description:1 online resource (24 pages)
Format:Mode of access: Internet
ISSN:1018-5941
Access:Electronic access restricted to authorized BRAC University faculty, staff and students