woensdag 12 augustus 2009
Read the full report from the CEDEFOP here.
Will they sing the same tune? Measuring convergence in the new European system of financial supervisors
Read the CEPR Policy Insight here.
Though Germany’s 2006 new fiscal rule was designed as a discipline to achieve fiscal sustainability, it could be a valuable “exit” mechanism from the crisis-linked build-up of public debt. Contradicting criticisms of the new rules as too constricting, this column argues there are few constraints on the ongoing counter-cyclical fiscal policy, and provisions allow for future flexibility. Ironically, the more serious risk is that the flexibility could weaken implementation.
Read the full article here.
The Laffer Curve shows the relationship between tax rates and tax revenues, with the insight that taxable income is not predetermined. The Laffer Curve is best known for demonstrating that, at a certain point, higher tax rates fail to produce more revenue, but the key insight is the much more modest point that changes in tax rates cause changes in taxable income, which leads to some level of revenue feedback. Politicians on both sides often exaggerate, with Republicans sometimes arguing that the Laffer Curve means that "all tax cuts pay for themselves." Some Democrats, by contrast, argue that tax policy has no impact on economic performance. This paper uses real world evidence to demonstrate that certain tax cuts can have a positive impact on economic performance and that "supply-side" tax cuts therefore do not "cost" the government much in terms of foregone tax revenue. This paper further explains how the Joint Committee on Taxation's revenue-estimating process is based on the untenable theory that changes in tax policy - even dramatic reforms such as a flat tax - do not effect economic growth. In other words, the current system assumes the tax rates have no impact on taxable income. Because of congressional budget rules, this leads to a bias for tax increases and against tax cuts. This paper explains that "static scoring" should be replaced with "dynamic scoring."
Read the paper here.
Lorsque la bombe des subprimes a éclaté aux Etats-Unis en août 2007, peu d'économistes se sont inquiétés des répercussions hors du secteur de la finance. Leurs modèles intégraient peu de variables financières. Il y avait toujours de riches investisseurs pour aider les établissements bancaires, les banques centrales et soutenir les marchés. ...
Lisez la suite de l'article ici.