Recognizing the Bias : Financial Cycles and Fiscal Policy /

This paper argues that asset price cycles have significant effects on fiscal outcomes. In particular, there is evidence of debt bias-the tendency of debt to increase over the cycle- that is significantly larger for house price cycles than stand-alone business cycles. Automatic stabilizers and discre...

Descripción completa

Detalles Bibliográficos
Autor principal: Budina, Nina
Otros Autores: Gracia, Borja, Hu, Xingwei, Saksonovs, Sergejs
Formato: Revista
Lenguaje:English
Publicado: Washington, D.C. : International Monetary Fund, 2015.
Colección:IMF Working Papers; Working Paper ; No. 2015/246
Acceso en línea:Full text available on IMF
LEADER 01744cas a2200277 a 4500
001 AALejournalIMF016419
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781513508863 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Budina, Nina. 
245 1 0 |a Recognizing the Bias :   |b Financial Cycles and Fiscal Policy /  |c Nina Budina, Borja Gracia, Xingwei Hu, Sergejs Saksonovs. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2015. 
300 |a 1 online resource (30 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper argues that asset price cycles have significant effects on fiscal outcomes. In particular, there is evidence of debt bias-the tendency of debt to increase over the cycle- that is significantly larger for house price cycles than stand-alone business cycles. Automatic stabilizers and discretionary fiscal policy generally respond to output fluctuations, whereas revenue increases due to house price booms are largely treated as permanent. Thus, neglecting the direct and indirect impact of asset prices on fiscal accounts encourages procyclical fiscal policies. 
538 |a Mode of access: Internet 
700 1 |a Gracia, Borja. 
700 1 |a Hu, Xingwei. 
700 1 |a Saksonovs, Sergejs. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2015/246 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2015/246/001.2015.issue-246-en.xml  |z IMF e-Library