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Automatic Fiscal Stabilization: Lithuania in the EU

Pesliakaité, Jurgita (2006)
Department of Economics
Abstract
This essay discusses fiscal policymaking in Lithuania as a member state in the European Union and in the European Monetary Union. More specifically, looking at official forecasts of the development of some economical and fiscal variables made by Lithuanian authorities and the European Commission for 2005-2008 and simulating business cycles in 2009-2030, it is concluded that it would be thoughtful to increase the cyclical sensitivity of Lithuanian budget, thus making the national fiscal policy more predictable without risk to violate fiscal obligations to the European Union. This conclusion is based on the calculations of the safety margins with different budget balance elasticity and applying the theoretical advantages of automatic fiscal... (More)
This essay discusses fiscal policymaking in Lithuania as a member state in the European Union and in the European Monetary Union. More specifically, looking at official forecasts of the development of some economical and fiscal variables made by Lithuanian authorities and the European Commission for 2005-2008 and simulating business cycles in 2009-2030, it is concluded that it would be thoughtful to increase the cyclical sensitivity of Lithuanian budget, thus making the national fiscal policy more predictable without risk to violate fiscal obligations to the European Union. This conclusion is based on the calculations of the safety margins with different budget balance elasticity and applying the theoretical advantages of automatic fiscal stabilization. (Less)
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@misc{1337572,
  abstract     = {This essay discusses fiscal policymaking in Lithuania as a member state in the European Union and in the European Monetary Union. More specifically, looking at official forecasts of the development of some economical and fiscal variables made by Lithuanian authorities and the European Commission for 2005-2008 and simulating business cycles in 2009-2030, it is concluded that it would be thoughtful to increase the cyclical sensitivity of Lithuanian budget, thus making the national fiscal policy more predictable without risk to violate fiscal obligations to the European Union. This conclusion is based on the calculations of the safety margins with different budget balance elasticity and applying the theoretical advantages of automatic fiscal stabilization.},
  author       = {Pesliakaité, Jurgita},
  keyword      = {fiscal policy,budget balance elasticity,budget deficit,Lithuania,Economics, econometrics, economic theory, economic systems, economic policy,Nationalekonomi, ekonometri, ekonomisk teori, ekonomiska system, ekonomisk politik},
  language     = {eng},
  note         = {Student Paper},
  title        = {Automatic Fiscal Stabilization: Lithuania in the EU},
  year         = {2006},
}