The Potential Contribution of Fiscal Policy to Rebalancing and Growth in New Zealand
AbstractSimulations with the Fundâ€™s GIMF model show that raising government savings in New Zealand permanently by 1 percent of GDP is likely to improve the current account balance by about Â½ percent of GDP. The way government savings are achieved matters for GDP but little for the current account. However, results are sensitive to changes in the risk premium. Fiscally neutral changes in taxes and expenditures can raise output in the long run.
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Bibliographic InfoPaper provided by International Monetary Fund in its series IMF Working Papers with number 10/128.
Date of creation: 01 May 2010
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- Ding Ding & Werner Schule & Yan Sun, 2014. "Cross-Country Experience in Reducing Net Foreign Liabilities: Lessons for New Zealand," IMF Working Papers 14/62, International Monetary Fund.
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