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On the Economic and Budgetary Impact of Fiscal Devaluation in Portugal

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Author Info

  • Alfredo Marvão Pereira

    ()
    (Department of Economics, The College of William and Mary)

  • Rui M. Pereira

    ()
    (Department of Economics, The College of William and Mary)

Abstract

In this paper we show that fiscal devaluation, of the most disputed issues in the current policy debate in Portugal, has the technical capacity to stimulate employment and investment and increase GDP while improving the foreign account position. More importantly, as this has been a point ignored in the debate, it can significantly contribute towards budgetary consolidation.

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File URL: http://economics.wm.edu/wp/cwm_wp116.pdf
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Bibliographic Info

Paper provided by Department of Economics, College of William and Mary in its series Working Papers with number 116.

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Length: 10 pages
Date of creation: 29 Jul 2011
Date of revision:
Handle: RePEc:cwm:wpaper:116

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References

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  1. Alfredo M. Pereira & Pedro G. Rodrigues, 2004. "Strategies for Fiscal Reform in the Context of the EMU: the Case of Portugal," Review of Development Economics, Wiley Blackwell, vol. 8(1), pages 141-163, 02.
  2. Lipińska, Anna & von Thadden, Leopold, 2009. "Monetary and fiscal policy aspects of indirect tax changes in a monetary union," Working Paper Series 1097, European Central Bank.
  3. Stähler, Nikolai & Thomas, Carlos, 2011. "FiMod - a DSGE model for fiscal policy simulations," Discussion Paper Series 1: Economic Studies 2011,06, Deutsche Bundesbank, Research Centre.
  4. Francesco Franco, 2011. "Adjusting to external imbalances within the EMU, the case of Portugal," FEUNL Working Paper Series wp556, Universidade Nova de Lisboa, Faculdade de Economia.
  5. Alfredo Marvão Pereira & Rui M. Pereira, 2013. "Environmental Fiscal Reform and Fiscal Consolidation: The Quest for the Third Dividend in Portugal," Working Papers 114, Department of Economics, College of William and Mary.
  6. Alfredo Marvão Pereira & Rui M. Pereira, 2014. "What is it going to take to achieve 2020 Emission Targets? Marginal abatement cost curves and the budgetary impact of CO2 taxation in Portugal (," Working Papers 105, Department of Economics, College of William and Mary.
  7. Pedro G. Rodrigues & Alfredo M. Pereira, 2000. "On The Impact Of A Tax Reform Package In Portugal," Computing in Economics and Finance 2000 353, Society for Computational Economics.
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Cited by:
  1. Alfredo Marvão Pereira & Rui M. Pereira, 2012. "DGEP - A Dynamic General Equilibrium Model of the Portuguese Economy: Model Documentation," Working Papers 127, Department of Economics, College of William and Mary.

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