Fiscal devaluation : can it help to boost competitiveness? / Isabell Koske
Resource type: Ressourcentyp: Buch (Online)Book (Online)Language: English Series: OECD. OECD Economics Department working papers ; 1089Publisher: Paris : OECD, Economics Dep., 2013Description: Online-Ressource (16 S.) : graph. DarstSubject(s): Genre/Form: DOI: DOI: 10.1787/5k3z2dckn2bw-enOnline resources: Summary: The recent crisis has revealed large differences in external competitiveness between euro area member countries. Since nominal exchange rate devaluation is not an option for members of a currency area, governments in troubled member countries have been considering so-called fiscal devaluation, i.e. a shift from employers’ social security contribution to value added tax, as an alternative means to restore competitiveness. This paper discusses the potential benefits and drawbacks of such a reform and investigates under which circumstances it would have the intended effects. It argues that a fiscal devaluation can have transitory effects, but that any permanent real effects are likely to be small in size. The policy tool can thus not be a substitute for deeper structural reforms of labour, product and financial markets. However, it may be helpful as part of a broader package of reforms.PPN: PPN: 77658006XPackage identifier: Produktsigel: ZDB-13-SOC | ZDB-13-SOC-ebookNo physical items for this record
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