Choosing fiscal consolidation instruments compatible with growth and equity

Prednášajúci: Boris Cournède (OECD)

Miesto a čas konania:  kongresová sála NBS; 11:00 – 13:00 hod.
Despite sustained efforts made in recent years to rein in budget deficits, a majority of OECD countries still face substantial fiscal consolidation needs. The choices made about which spending areas to curtail and which taxes to hike will have implications for near-term activity and long-term growth as well as for equity and the current account. This paper proposes a method for choosing the instruments of consolidation so that they contribute to -- or minimise trade-offs with -- the goals of promoting near-term activity, longterm growth, equity, and global rebalancing. The proposed method is illustrated with detailed simulations for 31 OECD countries which are accompanied by an extensive range of alternative scenarios to confirm the robustness of the findings. The simulations highlight that half of OECD countries can reduce excess debt mainly through moderate adjustments to instruments (such as subsidies, pensions or property taxes) that have at most limited side-effects on other policy objectives. They also show that a smaller number of countries face more difficult choices, having to either make bigger adjustments in areas where spending cuts or tax hikes are least harmful or to rely significantly on consolidation instruments with substantial adverse side-effects. These trade-offs can to a large extent be alleviated through structural reforms in the delivery of public services and in taxation.

Sprievodné dokumenty:

Working Paper 

O prednášajúcom:

Boris Cournède

Boris Cournède is currently responsible for a wide-ranging project on how to reconcile growth and equity objectives with the fiscal consolidation needs faced by OECD countries. He was until recently heading the monetary and financial policy team. Boris is one of the main authors of the OECD Economic Outlook No. 91 published in June 2012. He worked for the World Bank and then the French Ministry of Finance where he was an Economic Advisor and a member of the French delegation to United Nations conferences on climate change. Boris has published a wide range of studies on monetary policy, financial markets, environmental policy and structural policies.

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