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dc.contributor.author
Frick, Andres
dc.contributor.author
Graff, Michael
dc.contributor.author
Hartwig, Jochen Kurt
dc.contributor.author
Siliverstovs, Boriss
dc.date.accessioned
2017-12-07T09:59:57Z
dc.date.available
2017-06-09T09:02:45Z
dc.date.available
2017-12-07T09:59:57Z
dc.date.issued
2010-02
dc.identifier.uri
http://hdl.handle.net/20.500.11850/29161
dc.identifier.doi
10.3929/ethz-a-005985366
dc.description.abstract
Towards the end of 2009, the world economy was recovering from its deepest recession since the end of World War II. Most countries around the world took resort to fiscal policy in order to foster this recovery. In this paper, we first discuss the pros and cons of discretionary fiscal policy from a history of economic thought perspective. Next, we summarise the fiscal policy measures taken in Switzerland. Then we use simulations with the KOF macroeconomic model to assess the effects on the Swiss economy of a) the Swiss measures on the one hand and b) the fiscal stimulus packages taken by Switzerland’s most important trading partners on the other. The KOF September 2009 forecast, which incorporates the fiscal stimuli that were launched or in the pipeline at that time, serves as the baseline scenario. To assess the impacts of the fiscal stimulus packages in Switzerland and abroad, we re-run the KOF macroeconometric model counterfactually, modifying the variables pertaining to the domestic and the international economy respectively to represent a situation in which no fiscal action had been taken. We find that the spillover from the foreign efforts to curb the recession clearly dwarfs the effect from the domestic stimulus packages. This holds even if we re-sort to the extremely cautious scenario where external demand for Swiss exports derived from the weighted GDP of the most important importers is only 50% of what it would be in normal times. Hence we conclude that in addition to its own (rather limited) efforts to fight the recession, Switzer-land took a long free ride that by far exceeded the short one it paid for.
en_US
dc.format
application/pdf
dc.language.iso
en
en_US
dc.publisher
KOF Swiss Economic Institute, ETH Zurich
dc.rights.uri
http://rightsstatements.org/page/InC-NC/1.0/
dc.subject
ECONOMIC CYCLE + BUSINESS CYCLE FORECASTS + TRADE CYCLE FORECASTS
en_US
dc.subject
WORLD ECONOMY
en_US
dc.subject
Simulations
en_US
dc.subject
Free-riding
en_US
dc.subject
Anti-cyclical fiscal policy
en_US
dc.subject
WELTWIRTSCHAFT
en_US
dc.subject
SCHWEIZ (MITTELEUROPA). SCHWEIZERISCHE EIDGENOSSENSCHAFT
en_US
dc.subject
SWITZERLAND (CENTRAL EUROPE). SWISS CONFEDERATION
en_US
dc.subject
KONJUNKTURPOLITIK
en_US
dc.subject
MAKROÖKONOMISCHE MODELLE (OPERATIONS RESEARCH)
en_US
dc.subject
STABILIZATION POLICY
en_US
dc.subject
KONJUNKTUR + KONJUNKTURVORHERSAGEN + KONJUNKTURPROGNOSEN
en_US
dc.subject
MACROECONOMIC MODELS (OPERATIONS RESEARCH)
en_US
dc.subject
International
en_US
dc.subject
Multiplier
en_US
dc.title
Discretionary Fiscal Policy
en_US
dc.type
Working Paper
dc.rights.license
In Copyright - Non-Commercial Use Permitted
ethz.title.subtitle
The Case of Switzerland
en_US
ethz.journal.title
KOF Working Papers
ethz.journal.volume
253
en_US
ethz.size
33 p.
en_US
ethz.code.ddc
DDC - DDC::3 - Social sciences::330 - Economics
en_US
ethz.identifier.nebis
005985366
ethz.publication.place
Zürich
en_US
ethz.publication.status
published
en_US
ethz.leitzahl
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
en_US
ethz.leitzahl.certified
ETH Zürich::00002 - ETH Zürich::00012 - Lehre und Forschung::00007 - Departemente::02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.::02525 - KOF Konjunkturforschungsstelle / KOF Swiss Economic Institute
ethz.date.deposited
2017-06-09T09:03:05Z
ethz.source
ECOL
ethz.source
ECIT
ethz.identifier.importid
imp59366ae3622d458238
ethz.identifier.importid
imp59364d955b13485055
ethz.ecolpid
eth:775
ethz.ecitpid
pub:48545
ethz.eth
yes
en_US
ethz.availability
Open access
en_US
ethz.rosetta.installDate
2017-07-20T14:44:30Z
ethz.rosetta.lastUpdated
2020-02-15T10:16:10Z
ethz.rosetta.versionExported
true
ethz.COinS
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