Fiscal Policies in Eastern Europe
Abstract
We focus on the role of fiscal policies in macroeconomic stabilization in eastern Europe and assess the sustainability of fiscal policies for the central and eastern European economies in transition. We show the main causes of fiscal imbalances experienced at the beginning of the transition process. Countries that adopted tight fiscal policies were more successful with their inflation stabilization programmes, have experienced a faster recovery of growth, and did not experience a steeper decline in output. Countries with unsustainable fiscal policies all floated their exchange rate, but there are both floating and peg arrangements among the successful stabilizers. In all the successful cases, however, current account convertibility was established. We also discuss the experience of Poland and Romania--two polar cases in terms of fiscal policies and present lessons and policy recommendations for other economies in transition. Copyright 1997 by Oxford University Press.Download Info
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Bibliographic Info
Article provided by Oxford University Press in its journal Oxford Review of Economic Policy.
Volume (Year): 13 (1997)
Issue (Month): 2 (Summer)
Pages: 47-64
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Web page: http://oxrep.oupjournals.org/
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Michał Mackiewicz & Piotr Krajewski, 2009.
"On the mechanisms of achieving fiscal (un)sustainability: the case of Poland,"
Empirica,
Springer, vol. 36(4), pages 445-460, November.
- Mackiewicz, Michał & Krajewski, Piotr, 2007. "On The Mechanisms of Achieving Fiscal (Un)Sustainability – The Case of Poland," MPRA Paper 16035, University Library of Munich, Germany.
- Aaron N. Mehrotra & Tuomas A. Peltonen, 2005. "Socio-economic development and fiscal policy - lessons from the cohesion countries for the new member states," Working Paper Series 467, European Central Bank.
- Gomes, Orlando, 2007.
"On the stability of endogenous growth models: an evaluation of the agents’ response to output fluctuations,"
MPRA Paper
2891, University Library of Munich, Germany.
- Orlando Gomes, 2009. "On the stability of endogenous growth models: An evaluation of the agents' response to output fluctuations," Journal of Economic Studies, Emerald Group Publishing, vol. 36(1), pages 17-35, January.
- Karsten Staehr, 2007. "Fiscal Policies and Business Cycles in an Enlarged Euro Area," CESifo Working Paper Series 1933, CESifo Group Munich.
- Green, Christopher J. & Holmes, Mark J. & Kowalski, Tadeusz, 2001. "Poland: a successful transition to budget sustainability?," Emerging Markets Review, Elsevier, vol. 2(2), pages 161-183, June.
- Budina, Nina & Van Wijnbergen, Sweder, 2000.
"Fiscal deficits, monetary reform, and inflation stabilization in Romania,"
Policy Research Working Paper Series
2298, The World Bank.
- Nina Budina & Sweder Van Wijnbergen, 2001. "Fiscal deficits, monetary reform and inflation stabilization in romania," Journal of Policy Reform, Taylor and Francis Journals, vol. 4(3), pages 165-194.
- Staehr, Karsten, 2008. "Fiscal policies and business cycles in an enlarged euro area," Economic Systems, Elsevier, vol. 32(1), pages 46-69, March.
- Sweder van Wijnbergen & Nina Budina, 1999. "Inflation Stabilization, Fiscal Deficits and Public Debt Management in Poland," Tinbergen Institute Discussion Papers 99-022/2, Tinbergen Institute.
- Karsten Staehr, 2007. "Fiscal policies and business cycles in an enlarged euro area," Bank of Estonia Working Papers 2007-03, Bank of Estonia, revised 08 Mar 2007.
- SILVESTRINI, Andrea, 2007.
"Testing fiscal sustainability in Poland: a Bayesian analysis of cointegration,"
CORE Discussion Papers
2007080, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Andrea Silvestrini, 2010. "Testing fiscal sustainability in Poland: a Bayesian analysis of cointegration," Empirical Economics, Springer, vol. 39(1), pages 241-274, August.
- Andrea, SILVESTRINI, 2007. "Testing fiscal sustainability in Poland : a Bayesian analysis of cointegration," Discussion Papers (ECON - Département des Sciences Economiques) 2007040, Université catholique de Louvain, Département des Sciences Economiques.
- Bruno Merlevede, 2000. "A Note on Reform Reversals and Output Growth in Transition Economies," LICOS Discussion Papers 9400, LICOS - Centre for Institutions and Economic Performance, KU Leuven.
- Pirttilä, Jukka, 1999. "Tax Evasion and Economies in Transition: Lessons from Tax Theory," BOFIT Discussion Papers 2/1999, Bank of Finland, Institute for Economies in Transition.
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