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Two factors straight out of a macroeconomics textbook seem to have done the trick: A timely application of fiscal and monetary stimulus, and the good fortune to have a weak currency at a useful moment.
But living with the board will be painful, too: it requires the swift application of fiscal austerity, and of structural reforms aimed at driving down costs.Delivering such reforms of the tax system, federalism, union privileges, and privatised monopolies will be a huge task for Mr de la Rua (if it is he).
An economic model illustrates the application of fiscal instruments to geothermal development for electricity generation.
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And, however regrettable the uneven application of the EU's fiscal rules, the European commission's recent decision to give France more time to reduce its budget deficit to 3% of GDP is welcome, coming as it did against the backdrop of a weak economy.
In his State of the City speech, Mayor Rudolph W. Giuliani showed a gap in his application of the most basic principles of fiscal conservatism (front page, Jan . 14.
Macroeconomic Effects of Fiscal Consolidation".
The costs of fiscal laxity were low.
It was a season of fiscal perestroika.
But the flip side of fiscal stimulus is fiscal tightening.
So we are exiting a period of fiscal stimulus and entering a period of fiscal consolidation.
financing in the form of fiscal coordination, euro bonds and fiscal transfers.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com