‘Through a glass darkly’: Fiscal expansion and macro-economic developments, 2001–2006
AbstractFor several years after 2001, fiscal policy in Hungary was characterised by expansion, boosting the economy through several channels. As a consequence, while the global economy slowed down temporarily between 2001 and 2003, economic growth remained stable at high levels in Hungary. Due to fiscal expansion, the picture formed of potential growth in Hungary was artificially biased in an upward direction. The growth rate of Hungary’s GDP would have been 1 per cent lower than it actually was between 2001 and 2003, and then between 2004 and 2006 it would have been similar to what was actually recorded. Accordingly, the business cycle would have moved more in conjunction with its European counterpart. The extent of slowdown in future potential growth is likely to have been smaller though.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Magyar Nemzeti Bank (the central bank of Hungary) in its journal MNB Bulletin.
Volume (Year): 3 (2008)
Issue (Month): 1 (April)
potential GDP; output gap; fiscal expansion.;
Find related papers by JEL classification:
- E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Olivér Miklós Rácz, 2012. "Using confidence indicators for the assessment of the cyclical position of the economy," MNB Bulletin, Magyar Nemzeti Bank (the central bank of Hungary), vol. 7(2), pages 41-46, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Johanna Jeney).
If references are entirely missing, you can add them using this form.