Stabilisation and rebalancing with fiscal or monetary devaluation: a model-based comparison

This paper takes a theoretical look at the extent to which fiscal devaluation policies, such as shifting the tax burden from labour to consumption, can achieve the same benefits as nominal exchange rate depreciation.

Information and identifiers

Discussion Papers 22. December 2015. Brussels. PDF. 32pp. Tab. Graph. Ann. Bibliogr. Free.
KC-BD-15-022-EN-N (online)
ISBN 978-92-79-48700-2 (online)
ISSN 2443-8022 (online)
doi: 10.2765/137016 (online)
JEL classification: E52, F41, F47

Disclaimer

Discussion Papers are written by the staff of the Directorate-General for Economic and Financial Affairs, or by experts working in association with them. The Papers are intended to increase awareness of the technical work being done by staff and to seek comments and suggestions for further analysis. The views expressed are the author’s alone and do not necessarily correspond to those of the European Commission.