43 results on '"Aleksandra Zdzienicka"'
Search Results
2. Twin Deficits in Developing Economies
- Author
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Aleksandra Zdzienicka and Davide Furceri
- Subjects
Economics and Econometrics ,050208 finance ,media_common.quotation_subject ,05 social sciences ,Developing country ,Percentage point ,Current account ,Monetary economics ,Recession ,Fiscal policy ,Government budget balance ,Exchange rate ,0502 economics and business ,Economics ,050207 economics ,media_common - Abstract
This paper provides new evidence of the existence and magnitude of the “twin deficits” in developing economies. It finds that 1 % of GDP unanticipated increase in the government budget balance improves, on average, the current account balance by 0.8 percentage point of GDP. This effect is substantially larger than that obtained using standard measures of fiscal impulse, such as the cyclically-adjusted budget balance. The results point to some heterogeneity across countries and over time. There is suggestive evidence that the effect tends to be larger: (i) during recessions; (ii) in countries that are more open to trade; (iii) that have less flexible exchange rate regimes; and (iv) with lower initial public debt-to-GDP ratios.
- Published
- 2020
3. Publisher Correction to: The Long Shadow of Public Interventions in the Financial Sector
- Author
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Giovanni Dell’Ariccia, Deniz Igan, Paolo Mauro, Hala Moussawi, Alexander F. Tieman, and Aleksandra Zdzienicka
- Subjects
General Economics, Econometrics and Finance ,General Business, Management and Accounting - Published
- 2022
4. Meeting the Sustainable Development Goals in Small Developing States with Climate Vulnerabilities: Cost and Financing
- Author
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Johanna Tiedemann, Veronica Piatkov, Dinar Prihardini, Juan Carlos Benitez, and Aleksandra Zdzienicka
- Published
- 2021
5. Managing External Volatility
- Author
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Johannes Eugster, Kenji Moriyama, Celine Rochon, Ghada Fayad, Nathan Porter, Stefan Laséen, Itai Agur, Zhongxia Zhang, Jeta Menkulasi, Camilo E Tovar Mora, Ran Bi, Katsiaryna Svirydzenka, Aleksandra Zdzienicka, Jiaqian Chen, and Helene Poirson Ward
- Subjects
Economy ,Demand shock ,Unintended consequences ,Financial crisis ,Monetary policy ,Economics ,General Earth and Planetary Sciences ,Open economy ,Volatility (finance) ,Exchange-rate flexibility ,General Environmental Science ,Highly sensitive - Abstract
Since the global financial crisis, non-reserve-issuing economies (NREs) have been highly sensitive to episodes of external pressures. With monetary policy independence constrained by this sensitivity, many NREs have utilized other policy instruments. This paper confirms the vulnerability of NREs to external shocks and finds that in some circumstances managing such shocks with multiple instruments can both lessen the policy response required from any one policy tool to financial and external shocks and increase the effectiveness of policies in stabilizing macro-financial conditions. Effectiveness however does not always imply appropriateness, which rests on an evaluation of potential trade-offs and unintended consequences.
- Published
- 2020
6. Political Costs of Tax-Based Consolidations
- Author
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Era Dabla-Norris, Aleksandra Zdzienicka, Chuling Chen, and Jay Rappaport
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Tax policy ,Tax revenue ,Tax credit ,Progressive tax ,Economics ,General Earth and Planetary Sciences ,International economics ,Tax reform ,Tax consolidation ,Corporate tax ,Indirect tax ,General Environmental Science - Abstract
This paper studies the impact of tax-based consolidations on reelection outcomes. Using a granular database of tax-based consolidations for a panel of 10 OECD countries over the last 40 years, we find that tax reforms are politically costly but some reforms are costlier than others. Measures aimed primarily at reducing existing deficits and debt are costlier than tax consolidation policies for improving long-term growth prospects. Electoral costs are particularly high for broad-based indirect tax and corporate tax reforms. Voters tend to penalize governments less if tax consolidations are announced early in the government’s term or if the government has a strong political mandate. Favorable economic conditions increase public support for tax-based consolidations. Personal income tax reforms are electorally salient if the reforms are frontloaded, announced during recessions, and in less progressive tax systems.
- Published
- 2019
7. China Spillovers: New Evidence from Time-Varying Estimates
- Author
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Davide Furceri, Aleksandra Zdzienicka, João Tovar Jalles, Furceri, D., Jalles, J., and Zdzienicka, A.
- Subjects
China ,Economics and Econometrics ,050208 finance ,Time-varying estimate ,Economic sector ,media_common.quotation_subject ,05 social sciences ,Commodity ,Developing country ,International economics ,Recession ,Spillover ,Shock (economics) ,Spillover effect ,0502 economics and business ,Economics ,050207 economics ,Emerging markets ,media_common - Abstract
The recent ârebalancingâ of Chinaâs economy has raised concerns that the countryâs growth slowdown may have large global implications. This note looks at this issue by analyzing the effects of Chinaâs growth shocks on the output of other countries and how these effects have changed over time. Estimates indicate that the magnitude of Chinaâs spillovers has steadily increased during the last two decades, but remains yet limited. Spillovers are larger in neighboring (Asian) countries and in emerging markets and developing economies. Trade linkages remain main transmission channels. In addition, a negative shock in China has (marginal) positive effects for net commodity importers while negative for net commodity exporters.
- Published
- 2017
8. The Long Shadow of the Global Financial Crisis: Public Interventions in the Financial Sector
- Author
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Deniz Igan, Hala Moussawi, Alexander Tieman, Aleksandra Zdzienicka, Giovanni Dell'Ariccia, and Paolo Mauro
- Subjects
General Earth and Planetary Sciences ,General Environmental Science - Abstract
We track direct public interventions and public holdings in 1,114 financial institutions over the period 2007–17 in 37 countries based on publicly available information. We use aggregate official data to validate this new dataset and estimate the fiscal impact of interventions, including the value of asset holdings remaining in state hands at end-2017. Direct public support to financial institutions amounted to $1.6 trillion ($3.5 trillion including guarantees), with larger amounts allocated to lower capitalized and less profitable banks. As of end-2017, only a few countries had fully divested the initial support they provided during the crisis. Public holdings were divested faster in better capitalized, more profitable, and more liquid banks, and in countries where the economy recovered faster. In countries where the government stake remained high relative to the initial intervention, private investment and credit growth were slower, financial access, depth, efficiency, and competition were worse, and financial stability improved less.
- Published
- 2019
9. Tax Reforms and Fiscal Shock Smoothing
- Author
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David Amaglobeli, Aleksandra Zdzienicka, Laura Jaramillo, and Pooja Karnane
- Subjects
Tax policy ,Value-added tax ,Direct tax ,Economics ,General Earth and Planetary Sciences ,Monetary economics ,Tax reform ,Indirect tax ,Smoothing ,General Environmental Science ,Tax rate ,Fiscal policy - Abstract
This paper examines the role of tax policy reforms in enhancing fiscal shock smoothing in a panel of 13 OECD economies during the period 1980-2017. The results suggest that tax reforms, in particular those that broaden the tax base, significantly enhance the ability of fiscal policy to mitigate the impact of growth shocks on disposable income. We find that the magnitude of shock smoothing increases from an average of 2 percent to 3-3½ percent following the reform. The effects are considerably higher for tax base than tax rate changes, and also higher for indirect tax than direct tax changes. The effects are symmetric—that is, the increase in shock smoothing following a reform expanding the tax base (rate) is similar to the decline in shock smoothing after a reform narrowing the tax base (rate). Tax elasticity, collection efficiency, and the progressivity of the tax system are important channels through which tax reforms affect fiscal stabilization.
- Published
- 2019
10. Meeting the Sustainable Development Goals in Small Developing States with Climate Vulnerabilities: Cost and Financing
- Author
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Aleksandra Zdzienicka and Dinar Prihardini
- Subjects
General Earth and Planetary Sciences ,General Environmental Science - Published
- 2021
11. Fiscal multipliers and job-protection regulation
- Author
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Romain Duval, Davide Furceri, Aleksandra Zdzienicka, and Matteo Cacciatore
- Subjects
Government spending ,Economics and Econometrics ,Layoff ,Employment protection legislation ,media_common.quotation_subject ,05 social sciences ,Market regulation ,Monetary economics ,Recession ,Exchange rate ,Economy model ,0502 economics and business ,Economics ,Multiplier (economics) ,050207 economics ,Finance ,050205 econometrics ,media_common - Abstract
We study, both theoretically and empirically, how labor market regulation affects fiscal multipliers. We focus on the stringency of employment protection legislation, a prominent source of rigidity in European labor markets. First, using a small-open economy model that features labor-market search-and-matching frictions and nominal rigidities, we show that an increase in government spending has larger output effects when firing costs are lower. The importance of layoff costs for the public spending multiplier is larger in the absence of exchange rate adjustment and in a recession. Second, we confirm these findings empirically using a panel of 26 advanced countries over the period 1970–2013. The effect of job protection on fiscal multipliers is both statistically and economically significant.
- Published
- 2021
12. The effects of monetary policy shocks on inequality
- Author
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Prakash Loungani, Davide Furceri, Aleksandra Zdzienicka, Furceri D., Loungani P., and Zdzienicka A.
- Subjects
Inflation ,Economics and Econometrics ,050208 finance ,Inequality ,media_common.quotation_subject ,05 social sciences ,Monetary policy ,Redistribution (cultural anthropology) ,International economics ,Monetary economics ,Interest rate ,Economic inequality ,Income distribution ,0502 economics and business ,Economics ,Business cycle ,sense organs ,050207 economics ,Income inequality ,Finance ,media_common ,Monetary policy shocks - Abstract
This paper provides new evidence of the effect of conventional monetary policy shocks on income inequality. We construct a measure of unanticipated changes in policy rates—changes in short-term interest rates that are orthogonal to unexpected changes in growth and inflation news—for a panel of 32 advanced and emerging market countries over the period 1990–2013. Our main finding is that contractionary monetary policy shocks increase income inequality, on average. The effect is asymmetric—tightening of policy raises inequality more than easing lowers it—and depends on the state of the business cycle. We find some evidence that the effect increases with the share of labor income and is mitigated by redistribution policies. Finally, while an unexpected increase in policy rates increases inequality, changes in policy rates driven by an increase in growth and inflation are associated with lower inequality.
- Published
- 2018
13. Twin Deficits in Developing Economies
- Author
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Aleksandra Zdzienicka and Davide Furceri
- Subjects
050208 finance ,0502 economics and business ,05 social sciences ,General Earth and Planetary Sciences ,050207 economics ,General Environmental Science - Published
- 2018
14. The Consequences of Banking Crises for Public Debt
- Author
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Aleksandra Zdzienicka and Davide Furceri
- Subjects
Government ,media_common.quotation_subject ,Geography, Planning and Development ,Debt-to-GDP ratio ,Government debt ,Financial system ,Development ,Debt ,Financial crisis ,Economics ,Debt ratio ,Internal debt ,Debt levels and flows ,Finance ,media_common - Abstract
The aim of this paper is to assess the consequences of banking crises for public debt. Using an unbalanced panel of 154 countries from 1980 to 2006, the paper shows that banking crises are associated with a significant and long-lasting increase in government debt. The effect is a function of the severity of the crisis. In particular, for severe crises, comparable to the most recent one in terms of output losses, banking crises are followed by a medium-term increase of about 37 percentage points in the government gross debt-to-GDP ratio. Measuring the increase in debt in this manner seems more appropriate than some of the measures used in the literature that have provided off-quoted and very large numbers for the run-up in debt. In addition, the debt ratio increased more in countries with a higher initial gross debt-to-GDP ratio and with a higher initial foreign debt-to-GDP ratio.
- Published
- 2012
15. Banking Crises and Short and Medium Term Output Losses in Emerging and Developing Countries: The Role of Structural and Policy Variables
- Author
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Davide Furceri, Aleksandra Zdzienicka, Furceri, D., and Zdzienicka, A.
- Subjects
Economics and Econometric ,Economics and Econometrics ,Sociology and Political Science ,Geography, Planning and Development ,Monetary policy ,Financial crisi ,Developing country ,Current account ,Monetary economics ,Development ,Financial deepening ,Market liquidity ,Medium term ,Output losse ,Financial crisis ,Developing countrie ,Economics ,Emerging economie ,Development3304 Education ,Emerging markets - Abstract
The aim of this paper is to assess the dynamic impact of banking crises on output for a panel of developing economies. Using an unbalanced panel of 159 countries from 1970 to 2006, the paper shows that banking crises produce significant output losses. Output losses are larger for relatively richer economies, characterized by a higher level of financial deepening and larger current account imbalances. Flexible exchange rates, fiscal and monetary policy, and liquidity support policies have been found to attenuate the effect of the crises. © 2012 Elsevier Ltd.
- Published
- 2012
16. The Effects of Monetary Policy Shocks on Inequality
- Author
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Prakash Loungani, Aleksandra Zdzienicka, and Davide Furceri
- Subjects
Panel analysis ,Personal income ,Economic inequality ,Income distribution ,Monetary policy ,Economics ,Business cycle ,General Earth and Planetary Sciences ,Wage share ,Monetary economics ,Emerging markets ,General Environmental Science - Abstract
This paper provides new evidence of the effect of monetary policy shocks on income inequality. Using a measure of unanticipated changes in policy rates for a panel of 32 advanced and emerging market countries over the period 1990-2013, the paper finds that contractionary (expansionary) monetary actions increase (reduce) income inequality. The effect, however, varies over time, depending on the type of the shocks (tightening versus expansionary monetary policy) and the state of the business cycle, and across countries depending on the share of labor income and redistribution policies. In particular, we find that the effect is larger for positive monetary policy shocks, especially during expansions. Looking across countries, we find that the effect is larger in countries with higher labor share of income and smaller redistribution policies. Finally, while an unexpected increase in policy rates increases inequality, changes in policy rates driven by an increase in growth are associated with lower inequality.
- Published
- 2016
17. Financial Integration and Fiscal Policy
- Author
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Davide Furceri, Aleksandra Zdzienicka, Furceri, D, and Zdzienicka, A
- Subjects
Economics and Econometrics ,European integration ,Financial analysis ,Economics ,Financial integration ,Government debt ,Monetary economics ,Volatility (finance) ,External debt ,financial integration and fiscal policy ,Fiscal union ,Fiscal policy - Abstract
The aim of this paper is to assess the impact of financial integration on fiscal policy. Using an unbalanced panel of 31 OECD countries from 1970 to 2009, the paper shows that financial integration has significant disciplinary effects by reducing fiscal deficits and (discretionary) spending volatility. In addition, we find that financial integration affects the composition of government debt and enhances risk-sharing by increasing the share of foreign debt to the total. The results are robust to both de jure and de facto measures of financial integration, different measures of budget balance, and different estimation strategies.
- Published
- 2011
18. A re-assessment of credit development in European transition economies
- Author
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Aleksandra Zdzienicka
- Subjects
Czech ,Economics and Econometrics ,International economics ,General Business, Management and Accounting ,Bank Credit, Dynamic Panel, CEECs ,language.human_language ,Eastern european ,Equilibrium level ,Bank credit ,Economy ,Credit history ,jel:G2 ,Economics ,language ,jel:C2 ,Credit crunch ,Business and International Management ,General Economics, Econometrics and Finance ,Finance - Abstract
The aim of the paper is to re-assess the bank credit development in 11 Central and Eastern European countries and to provide new estimates of the credit-to-GDP ratio equilibrium level. Using filtering methods and dynamic panel estimations, our results suggest an “excessive” credit development for most of the studied economies until 2007. After this period, while credit has continued to remain excessive in Bulgaria, Hungary, Poland and Slovakia, it has decelerated in the other countries. However, while the results suggest a possibility of “credit crunch” in the Baltic republics and, to a less extent, in Croatia, credit deceleration may lead to “soft landing” for the Czech Republic, Romania and Slovenia.
- Published
- 2011
19. The real effect of financial crises in the European transition economies1
- Author
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Aleksandra Zdzienicka and Davide Furceri
- Subjects
Finance ,Economics and Econometrics ,Exchange rate ,Work (electrical) ,business.industry ,Financial crisis ,Monetary policy ,Economics ,External financing ,business ,Banking sector ,Fiscal policy - Abstract
The aim of this work is to assess the impact of financial crises on output for 11 European transition economies (CEECs). The results suggest that financial crises have a significant and permanent effect, lowering long-term output by about 17 percent. The effect is more important in smaller countries, with relative higher dependence on external financing, and in which the banking sector noticed more important financial disequilibria. We also found that fiscal policy measures have been the most efficient tools in dealing with the crises, while the role of monetary policy instruments has been rather blinded. Exchange rate resulted to be more a propagator than a crises absorber, while the IMF credit has been found to have positive (but not significant) impact on growth performance. Finally, the effect for the CEECs is much bigger than in the EU advanced economies, for which we found that financial crises lowers long-term output only by 2 percent.
- Published
- 2010
20. Book review: Jean-Pierre Allegret: Exchange Rate Regimes for Emerging Countries. Perspectives for the 21st Century (Vuibert Editions, 2005)
- Author
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Irene Andreou and Aleksandra Zdzienicka
- Published
- 2007
21. The New Normal; A Sector-level Perspective on Productivity Trends in Advanced Economies
- Author
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Era Dabla-Norris, Si Guo, Vikram Haksar, Minsuk Kim, Kalpana Kochhar, Kevin Wiseman, and Aleksandra Zdzienicka
- Subjects
Productivity ,structural reforms, growth, structural change, labor, productivity growth, employment, labor productivity, Macroeconomic Analyses of Economic Development, Government Policy - Abstract
Total factor productivity growth was stagnant or slowing in many advanced countries even prior to the crisis. This paper documents sector-level productivity patterns across advanced economies prior to the crisis and examines the role of product and labor market rigidities as well as innovation and investments in information technology and human capital in driving productivity differences across sectors and countries. Since productivity payoffs of reforms evolve over time, we also focus on large changes in the structural indicators examine their dynamic impact on productivity, employment, and output. Our results suggest that reform priorities depend on country-specific settings, including the scale of specific policy distortions and the distance from the technology frontier. Productivity gains from reforms are large and materialize predominantly in the medium term, with some important variations across industries and countries.
- Published
- 2015
22. Effects of Monetary and Macroprudential Policies on Financial Conditions: Evidence from the United States
- Author
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Sally Chen, Katsiaryna Svirydzenka, Federico Diaz Kalan, Stefan Laséen, and Aleksandra Zdzienicka
- Subjects
Exchange rate ,Spillover effect ,Informal sector ,Economic sector ,Financial crisis ,Monetary policy ,Economics ,General Earth and Planetary Sciences ,Context (language use) ,Financial conditions ,Monetary economics ,General Environmental Science - Abstract
The Global Financial Crisis has reopened discussions on the role of the monetary policy in preserving financial stability. Determining whether monetary policy affects financial variables domestically—especially compared to the effects of macroprudential policies— and across borders, is crucial in this context. This paper looks into these issues using U.S. exogenous monetary policy shocks and macroprudential policy measures. Estimates indicate that monetary policy shocks have significant and persistent effects on financial conditions and can attenuate long-term financial instability. In contrast, the impact of macroprudential policy measures is generally more immediate but shorter-lasting. Also, while an exogenous increase in U.S. monetary policy rates tends to reduce credit and house prices in other countries—with the effects varying with country-specific characteristics—an increase driven by improved U.S. economic conditions tends to have the opposite effect. Finally, we do not find evidence of cross-border spillover effects associated with U.S. macroprudential policies.
- Published
- 2015
23. Structural reforms in the EU: Policy prescriptions to boost productivity
- Author
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John Hassler, Dan Andrews, Werner Roeger, Janos Varga, Era Dabla-Norris, Minsuk Kim, Aleksandra Zdzienicka, Angana Banerji, and Jan in 't Veld
- Subjects
business.industry ,Economics, Econometrics and Finance (miscellaneous) ,EU-Regionalpolitik ,International trade ,International economics ,Total factor productivity growth ,European integration ,Economics ,ddc:330 ,Produktivitätsentwicklung ,Business, Management and Accounting (miscellaneous) ,media_common.cataloged_instance ,EU-Staaten ,European union ,business ,Total factor productivity ,Productivity ,Economic potential ,Social policy ,media_common - Abstract
Productivity-enhancing structural reforms are crucial to the economic prospects of the EU. Indeed, such reforms are even more urgent in the current environment in which many economies are reaching the limits of the policy support they can provide to shore up demand. Moreover, even as some of the crisis-related effects fade, demographic headwinds loom, further strengthening the case for boosting productivity. The key question is how to identify, prioritise and calibrate the reforms that best suit each country's situation. This Forum examines specifi c barriers to enhanced productivity within the EU and puts forth policy proposals to offset the secular slowdown apparent in advanced economies and take better advantage of the EU's vast economic potential.
- Published
- 2015
24. Private Sector Deleveraging and Growth Following Busts
- Author
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Aleksandra Zdzienicka, Kevin Wiseman, Sally Chen, Minsuk Kim, and Marijn Otte
- Subjects
media_common.quotation_subject ,Monetary economics ,International economics ,Private sector ,Recession ,Debt overhang ,Financial cycles ,Emerging markets ,Financial crises ,Cross country analysis ,Economic growth ,Developed countries ,Debt reduction ,Time series ,deleveraging, leverage cycles, growth, debt, balance sheet, debt overhang, markets, Models with Panel Data ,Debt ,Financial crisis ,Economics ,General Earth and Planetary Sciences ,Balance sheet ,Deleveraging ,General Environmental Science ,media_common - Abstract
Balance sheet recessions have been a drag on activity after the Global Financial Crisis, underscoring the important role of balance sheet adjustment for resuming sustained growth. In this paper we examine private sector deleveraging experiences across 36 advanced and emerging economies countries since 1960. We consider the common features and divergent experiences of deleveraging episodes across countries, and analyze empirically the impact of different aspects of deleveraging during the bust phase of leverage cycles on subsequent medium-term growth. The results suggest that larger and quicker unwinding of non-financial sector debt overhangs is associated with sizable medium-term output gains, and that policies should focus on facilitating up-front balance sheet adjustment.
- Published
- 2015
25. Responding to Shocks and Maintaining Stability in the West African Economic and Monetary Union
- Author
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Christina Kolerus, Douglas Shapiro, Aleksandra Zdzienicka, and Ermal Hitaj
- Subjects
biology ,business.industry ,Monetary policy ,International economics ,Terms of trade ,Fiscal policy ,Agriculture ,Toll ,Development economics ,Economics ,Business cycle ,Economic and monetary union ,biology.protein ,Cost of living ,business - Abstract
The West African Economic and Monetary Union (WAEMU), like other monetary unions, faces a number of challenges in dealing with macroeconomic shocks. The region experiences a large number of exogenous shocks: climate-related (e.g., droughts, floods), with a heavy toll on populations and agriculture, but also economic (e.g., terms of trade), with a large impact on key sectors and the cost of living. More generally business cycle synchronization within the WAEMU seems low. Addressing these shocks, while preserving the stability of the union, is therefore a critical issue in the WAEMU.This paper discusses these issues and suggests possible reforms.
- Published
- 2013
26. The Euro Area Crisis; Need for a Supranational Fiscal Risk Sharing Mechanism?
- Author
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Aleksandra Zdzienicka, Davide Furceri, Furceri, D., and Zdzienicka, A.
- Subjects
Western hemisphere ,Consumption (economics) ,Economics and Econometrics ,Consumption smoothing ,International economics ,Monetary economics ,Fiscal union ,European integration ,Consumption smoothing channel ,Economics ,Risk sharing ,General Earth and Planetary Sciences ,Risk sharing mechanism ,Mechanism (sociology) ,Health policy ,General Environmental Science - Abstract
The aim of this paper is to assess the effectiveness of risk sharing mechanisms in the euro area and whether a supranational fiscal risk sharing mechanism could insure countries against very severe downturns. Using an unbalanced panel of 15 euro area countries over the period 1979â2010, the results of the paper show that: (i) the effectiveness of risk sharing mechanisms in the euro area is significantly lower than in existing federations (such as the U.S. and Germany) and (ii) it falls sharply in severe downturns just when it is needed most; (iii) a supranational fiscal stabilization mechanism, financed by a relatively small contribution, would be able to fully insure euro area countries against very severe, persistent and unanticipated downturns.
- Published
- 2013
27. The Short-Term Effects of Structural Reforms
- Author
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Orsetta Causa, Aleksandra Zdzienicka, Romain Bouis, Romain Duval, and Lilas Demmou
- Subjects
Economy ,Product market ,Short run ,media_common.quotation_subject ,Unemployment ,Economics ,Monetary economics ,media_common - Abstract
Drawing on new empirical analysis of 30 years of structural reforms across the OECD, this paper sheds light on the impact of reforms over time, identifies the horizon over which their full effects materialise, and investigates whether such effects vary with prevailing economic conditions and institutions. Impulse responses of aggregate outcomes (GDP growth, employment rate) to various labour, product market and tax reforms are estimated at different horizons. This analysis indicates that the benefits from reforms typically take time to fully materialise. When significant effects are found in the short run, reforms seldom involve significant aggregate economic losses; on the contrary they often deliver some benefits. The absence of major depressing effects does not lend support to the view that reforms should be in general accompanied by substantial macroeconomic policy easing in order to deliver some short-term gains. Nevertheless, there is also tentative evidence that some labour market reforms (e.g. of unemployment benefit systems and job protection) pay off more quickly in good times than in bad times, and can even entail short-term losses in severely depressed economies.
- Published
- 2012
28. The Effects of Social Spending on Economic Activity: Empirical Evidence from a Panel of OECD countries
- Author
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Aleksandra Zdzienicka, Davide Furceri, Furceri, D, and Zdzienicka, A
- Subjects
Macroeconomics ,Economics and Econometrics ,Private consumption ,media_common.quotation_subject ,Consumer spending ,jel:E60 ,Settore SECS-P/02 Politica Economica ,jel:H30 ,Oecd countries ,Fiscal policy ,social spending ,Real gross domestic product ,Accounting ,Unemployment ,Economics ,Fiscal Policy ,Social Spending ,Economic Activity ,Demographic economics ,Empirical evidence ,Finance ,media_common - Abstract
The aim of this paper is to assess the short term effects of social spending on economic activity. Using a panel of OECD countries from 1980 to 2005, the results show that social spending has expansionary effects on GDP. In particular, we find that an increase of 1% of social spending increases GDP by about 0.1 percentage point, which, given the share of social spending to GDP, corresponds to a multiplier of about 0.6. The effect is similar to the one of total government spending, and it is larger in periods of severe downturns. Among spending subcategories, social spending in Health and Unemployment benefits have the greatest effects. Social spending also positively affects private consumption while it has negligible effects on investment. The empirical results are economically and statistically significant, and robust.
- Published
- 2012
29. The Real Effect of Financial Crises in the European Transition Economies
- Author
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Davide Furceri, Aleksandra Zdzienicka-Durand, Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development (OCDE), Groupe d'analyse et de théorie économique (GATE), Université Lumière - Lyon 2 (UL2)-Ecole Normale Supérieure Lettres et Sciences Humaines (ENS LSH)-Centre National de la Recherche Scientifique (CNRS), Organisation de Coopération et de Développement Economiques (OCDE), Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), Centre National de la Recherche Scientifique (CNRS)-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université Lumière - Lyon 2 (UL2)-École normale supérieure - Lyon (ENS Lyon), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS), Furceri, D, and Zdzienicka, A
- Subjects
Crises ,Financial Crisis ,Output Growth ,CEECs ,Output Growth,Financial Crisis,CEECs ,JEL: G - Financial Economics/G.G1 - General Financial Markets ,JEL: E - Macroeconomics and Monetary Economics/E.E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance - Abstract
Working Paper GATE 2009-20; International audience; The aim of this work is to assess the impact of financial crises on output for 11 European transition economies (CEECs). The results suggest that financial crises have a significant and permanent effect, lowering long-term output by about 17 percent. The effect is more important in smaller countries, with relative higher dependence on external financing, and in which the banking sector noticed more important financial disequilibria. We also found that fiscal policy measures have been the most efficient tools in dealing with the crises, while the role of monetary policy instruments has been rather blinded. Exchange rate resulted to be more a propagator than a crises absorber, while the IMF credit has been found to have positive (but not significant) impact on growth performance. Finally, the effect for the CEECs is much bigger than in the EU advanced economies, for which we found that financial crises lowers long-term output only by 2 percent.
- Published
- 2011
30. The Effect of Nominal Exchange Rate Volatility on Real Macroeconomic Performance in the CEE Countries
- Author
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Davide Furceri, Aleksandra Zdzienicka, Reiner Martin, Olga Arratibel, Arratibel, O, Furceri, D, Martin, R, Zdzienicka, A, Banque Centrale Européenne (BCE), Banque Centrale Européenne, Organisation de Coopération et de Développement Economiques = Organisation for Economic Co-operation and Development (OCDE), Groupe d'Analyse et de Théorie Economique Lyon - Saint-Etienne (GATE Lyon Saint-Étienne), École normale supérieure de Lyon (ENS de Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet - Saint-Étienne (UJM)-Centre National de la Recherche Scientifique (CNRS), Organisation de Coopération et de Développement Economiques (OCDE), Groupe d'analyse et de théorie économique (GATE Lyon Saint-Étienne), École normale supérieure - Lyon (ENS Lyon)-Université Lumière - Lyon 2 (UL2)-Université Claude Bernard Lyon 1 (UCBL), Université de Lyon-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Centre National de la Recherche Scientifique (CNRS), Centre National de la Recherche Scientifique (CNRS)-Université de Lyon-Université Jean Monnet [Saint-Étienne] (UJM)-Université Claude Bernard Lyon 1 (UCBL), and Université de Lyon-Université Lumière - Lyon 2 (UL2)-École normale supérieure - Lyon (ENS Lyon)
- Subjects
Economics and Econometrics ,050208 finance ,Credit ,Member states ,FDI ,05 social sciences ,1. No poverty ,EU,Exchange Rate Volatility,Growth,FDI,Credit,Current Account ,Growth ,Current account ,Monetary economics ,Foreign direct investment ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Exchange rate volatility ,Eastern european ,Current Account ,8. Economic growth ,0502 economics and business ,Forward volatility ,Economics ,050207 economics ,EU - Abstract
Working Paper Gate 09-34; International audience; This paper analyzes the relation between nominal exchange rate volatility and several macroeconomic variables, namely real per output growth, excess credit, foreign direct investment (FDI) and the current account balance, in the Central and Eastern European EU Member States. Using panel estimations for the period between 1995 and 2008, we find that lower exchange rate volatility is associated with higher growth, higher stocks of FDI, higher current account deficits, and higher excess credit. The results are economically and statistically significant, and robust.
- Published
- 2011
31. How costly are debt crises?
- Author
-
Davide Furceri, Aleksandra Zdzienicka, Furceri, D, and Zdzienicka, A
- Subjects
Western hemisphere ,Economics and Econometrics ,media_common.quotation_subject ,jel:E60 ,Settore SECS-P/02 Politica Economica ,Monetary economics ,Economic models ,Sovereign debt ,Gross domestic product ,output losses, debt crises, sovereign defaults, debt crisis, currency crises, crisis episodes, currency crisis ,Currency crisis ,jel:G10 ,Identification (information) ,Output Losses ,Debt Crises ,Sovereign Defaults ,Crises ,Currency ,Debt ,Economics ,General Earth and Planetary Sciences ,Default ,Economic model ,Endogeneity ,Finance ,General Environmental Science ,Debt crisis ,media_common - Abstract
The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The results also suggest that debt crises tend to be more detrimental than banking and currency crises. The significance of the results is robust to different specifications, identification and endogeneity checks, and datasets.
- Published
- 2011
32. The Consequences of Banking Crises for Public Debt
- Author
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Aleksandra Zdzienicka and Davide Furceri
- Subjects
Macroeconomics ,Debt ,media_common.quotation_subject ,Debt-to-GDP ratio ,Financial crisis ,Economics ,Government debt ,Debt ratio ,Internal debt ,Monetary economics ,Debt levels and flows ,External debt ,media_common - Abstract
The aim of this paper is to assess the consequences of banking crises for public debt. Using an unbalanced panel of 154 countries from 1980 to 2006, the paper shows that banking crises are associated with a significant and longlasting increase in government debt. The effect is a function of the severity of the crisis. In particular, for severe crises, comparable to the most recent one in terms of output losses, banking crises are followed by a medium-term increase of about 37 percentage points in the government gross debt-to-GDP ratio. In addition, the debt ratio increased more in countries with higher initial gross debt-to-GDP ratio, with a higher share of foreign debt, and with a lower quality of institutions (in terms of political stability and democracy). The increase in government debt is also a function of the size of the fiscal stimulus to counter the economic downturns and varies with the type of banking intervention policy used.
- Published
- 2010
33. Banking Crises and Short and Medium Term Output Losses in Developing Countries: The Role of Structural and Policy Variables
- Author
-
Davide Furceri and Aleksandra Zdzienicka
- Subjects
Intervention (law) ,Work (electrical) ,Monetary policy ,Financial crisis ,Economics ,Developing country ,Current account ,Monetary economics ,Financial deepening ,Market liquidity - Abstract
The aim of this work is to assess the short and medium term impact of banking crises on developing economies. Using an unbalanced panel of 159 countries from 1970 to 2006, the paper shows that banking crises produce significant output losses, both in the short and in the medium term. The effect depends on structural and policy variables. Output losses are larger for relatively more wealthy economies, characterized by a higher level of financial deepening and larger current account imbalances. Flexible exchange rates, fiscal and monetary policy have been found to be efficient tools to attenuate the effect of the crises. Among banking intervention policies, liquidity support resulted to be the one associated with lower output losses.
- Published
- 2010
34. Banking Crises and Short and Medium Term Output Losses in Developing Countries: The Role of Structural and Policy Variables
- Author
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Davide, Furceri and Aleksandra, Zdzienicka
- Subjects
jel:E60 ,jel:G01 ,Output Losses,Financial Crisis ,Output Growth, Financial Crisis - Abstract
The aim of this work is to assess the short and medium term impact of banking crises on developing economies. Using an unbalanced panel of 159 countries from 1970 to 2006, the paper shows that banking crises produce significant output losses, both in the short and in the medium term. The effect depends on structural and policy variables. Output losses are larger for relatively more wealthy economies, characterized by a higher level of financial deepening and larger current account imbalances. Flexible exchange rates, fiscal and monetary policy have been found to be efficient tools to attenuate the effect of the crises. Among banking intervention policies, liquidity support resulted to be the one associated with lower output losses.
- Published
- 2010
35. How Costly are Debt Crises?
- Author
-
Davide Furceri and Aleksandra Zdzienicka
- Subjects
Currency ,Debt ,media_common.quotation_subject ,Financial crisis ,Debt-to-GDP ratio ,Economics ,Monetary economics ,Internal debt ,International economics ,Endogeneity ,Debt levels and flows ,Gross domestic product ,media_common - Abstract
The aim of this paper is to assess the short- and medium-term impact of debt crises on GDP. Using an unbalanced panel of 154 countries from 1970 to 2008, the paper shows that debt crises produce significant and long-lasting output losses, reducing output by about 10 percent after eight years. The results also suggest that debt crises tend to be more detrimental than banking and currency crises. The significance of the results is robust to different specifications, identification and endogeneity checks, and datasets.
- Published
- 2010
36. The Consequences of Banking Crises on Public Debt
- Author
-
Davide Furceri and Aleksandra Zdzienicka
- Subjects
050208 finance ,0502 economics and business ,05 social sciences ,050207 economics - Published
- 2010
37. Vulnerabilities in Central and Eastern European countries: Dynamics of asymmetric shocks
- Author
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Aleksandra Zdzienicka-Durand, Dao, Taï, Groupe d'analyse et de théorie économique (GATE), and Université Lumière - Lyon 2 (UL2)-Ecole Normale Supérieure Lettres et Sciences Humaines (ENS LSH)-Centre National de la Recherche Scientifique (CNRS)
- Subjects
Euro Adoption ,Structural Shocks,CEECs,VAR model,Kalman filter,Euro Adoption ,CEECs ,Kalman filter ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,VAR model ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,Structural Shocks - Abstract
Working paper GATE 2009-17; In this work, we use the VAR and space-state methodology to analyze how the recent developments in 20 European countries have modified the dynamics of structural shocks. Our results confirm a visible progress in (predominated output fluctuations) supply shocks convergence between the CEECs and the euro zone, but also corroborate a positive initial impact of EMU creation and EU enlargement supply shocks correlation. In particular, we find that Croatia, Poland, Slovakia and Slovenia are good candidates to the euro adoption under condition of greater fiscal policy alignment.
- Published
- 2009
38. Financial Vulnerability in the Central and Eastern European Countries
- Author
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Aleksandra Zdzienicka, Irène Andreou, and Dao, Taï
- Subjects
Financial Vulnerability ,Panel Probit Model ,Eastern european ,Actuarial science ,Public economics ,Work (electrical) ,CEECs ,Probit model ,Economics ,Sample (statistics) ,Financial vulnerability ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,Financial Vulnerability,Panel Probit Model,CEECs - Abstract
In this work we use a panel probit model to analyze the sources of financial vulnerability in four Central and Eastern European countries. The incontestable advantages of applying this method, associated with some elements of the non-parametric approach applied during the initial selection of the used indicators, allow us to accomplish, rather well, this objective.Indeed, the model performs considerably well in the sample and the whole approach can provide useful and supportive instruments for the study of financial vulnerabilities in transition economies.
- Published
- 2009
39. The Real Effect of Financial Crises in the European Transition Economies
- Author
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Aleksandra Zdzienicka and Davide Furceri
- Subjects
Finance ,Exchange rate ,Work (electrical) ,Economy ,business.industry ,Financial crisis ,Monetary policy ,Economics ,External financing ,Monetary economics ,business ,Banking sector ,Fiscal policy - Abstract
The aim of this work is to assess the impact of financial crises on output for 11 European transition economies (CEECs). The results suggest that financial crises have a significant and permanent effect, lowering long-term output by about 17 percent. The effect is more important in smaller countries, with relative higher dependence on external financing, and in which the banking sector noticed more important financial disequilibria. We also found that fiscal policy measures have been the most efficient tools in dealing with the crises, while the role of monetary policy instruments has been rather blinded. Exchange rate resulted to be more a propagator than a crises absorber, while the IMF credit has been found to have positive (but not significant) impact on growth performance. Finally, the effect for the CEECs is much bigger than in the EU advanced economies, for which we found that financial crises lowers long-term output only by 2 percent.
- Published
- 2009
40. Vulnerabilities in Central and Eastern Europe : Credit Growth
- Author
-
Aleksandra Zdzienicka-Durand and Dao, Taï
- Subjects
Estimation ,Dynamic Panel ,International economics ,Financial vulnerability ,Monetary economics ,Financial development ,Eastern european ,Equilibrium level ,Work (electrical) ,CEECs ,Bank Credit Growth ,Economics ,Credit crunch ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,Bank Credit Growth,Dynamic Panel,CEECs - Abstract
In this work, we try to analyze the recent credit development in 11 Central and Eastern European countries and estimate the credit-to-GDP ratio equilibrium level using filtering methods and dynamic panel estimations. Our estimation findings corroborate previous fears about the rapid credit growth in the CEECs. Indeed, in many cases the credit expansion exceeds the level justified by their fundamentals or financial development. Under normal conditions, this rapid growth and even ''overshooting'' of banking credit could be considered as an adjustment to its long-term equilibrium level. However, in the actual crisis situation, this excessive credit growth can reinforce other existing disequilibria and lead to an increase in the financial vulnerability of these countries.
- Published
- 2009
41. A forewarning indicator system for financial crises: the case of six Central and Eastern European countries
- Author
-
Alain Sand-Zantman, Gilles Dufrénot, Irène Andreou, Aleksandra Zdzienicka-Durand, Groupe d'analyse et de théorie économique (GATE), Université Lumière - Lyon 2 (UL2)-Ecole Normale Supérieure Lettres et Sciences Humaines (ENS LSH)-Centre National de la Recherche Scientifique (CNRS), Groupement de Recherche en Économie Quantitative d'Aix-Marseille (GREQAM), École Centrale de Marseille (ECM)-École des hautes études en sciences sociales (EHESS)-Centre National de la Recherche Scientifique (CNRS)-Aix Marseille Université (AMU), École des hautes études en sciences sociales (EHESS)-Aix Marseille Université (AMU)-École Centrale de Marseille (ECM)-Centre National de la Recherche Scientifique (CNRS), and Dao, Taï
- Subjects
crise de change ,050208 finance ,Financial economics ,système d'alarme précoce ,Composite Indicator ,05 social sciences ,Vulnerability ,Eastern Europe ,Composite indicator ,[SHS.ECO]Humanities and Social Sciences/Economics and Finance ,Currency crisis ,Early Warning System ,Eastern european ,Economy ,composite indicator,currency crisis,early warning system,crise de change,indicateur composé,système d'alarme précoce ,Currency Crisis,Early Warning System,Composite Indicator,Eastern Europe ,0502 economics and business ,Economics ,indicateur composé ,Early warning system ,Currency Crisis ,050207 economics ,[SHS.ECO] Humanities and Social Sciences/Economics and Finance ,General Economics, Econometrics and Finance - Abstract
We propose a measure of the probability of crises associated with an aggregate indicator, where the percentage of false alarms and the proportion of missed signals can be combined to give an appreciation of the vulnerability of an economy. In this perspective, the important issue is not only to determine whether a system produces true predictions of a crisis, but also whether there are forewarning signs of a forthcoming crisis prior to its actual occurrence. To this end, we adopt the approach initiated by Kaminsky, Lizondo and Reinhart (1998), analyzing each indicator and calculating each threshold separately. We depart from this approach in that each country is also analyzed separately, permitting the creation of a more “custom-made” early warning system for each one.
- Published
- 2009
42. Strengthening the West African Economic and Monetary Union
- Author
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Tidiane Kinda, Olivier Basdevant, Aleksandra Zdzienicka, and Patrick Imam
- Subjects
Economic integration ,Dilemma ,West african ,Fiscal space ,Debt ,media_common.quotation_subject ,Development economics ,Economic and monetary union ,Economics ,National level ,Context (language use) ,International economics ,media_common - Abstract
West African Economic and Monetary Union (WAEMU) countries face a well-known dilemma between the need to provide shock-smoothing mechanisms and the lack of adequate mechanisms to do so. WAEMU countries are subject to frequent and, to a large extent, asymmetric shocks. They have remained poorly diversified and vulnerable to external shocks, such as changing weather conditions. In addition to limited shock-smoothing mechanisms at the regional level, WAEMU members’ ability to respond to shocks through national policies is also constrained by limited fiscal space and the need to preserve external stability—not only at the national level but also at the union level. In this context, developing a well-defined fiscal rule framework at the national level would help to build the necessary fiscal space for shock-smoothing. In addition, the development of specific shock-smoothing mechanisms—including a more developed and integrated financial sector—would also be critical. In addition, promoting financial development is also a challenge, which needs to be addressed in tandem with an adequate surveillance system. Some of these challenges have been faced by other monetary unions, such as the euro area.
- Published
- 2015
43. Effects of Monetary and Macroprudential Policies on Financial Conditions; Evidence from the United States
- Author
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Aleksandra Zdzienicka, Sally Chen, Federico Diaz Kalan, Stefan Laseen, and Katsiaryna Svirydzenka
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