Fiscal Policy and Interest Rates in Europe

By R. Faini. 2006

231 citations recorded by the source corpus.

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Citations in the corpus

What Explains the Surge in Euro Area Sovereign Spreads during the Financial Crisis of 2007–09? (2009, background): “…several studies tend to point to a significant impact of government debt and (not quite unambiguously) deficit on sovereign bond spreads.2 Faini (2006) finds a significant effect of fiscal deficit and debt levels on the aggregate EMU interest rate level, as well as on sovereign bond…”
On Secular Stagnation in the Industrialized World (2019, background): “In an important study of the Euro Area, Riccardo Faini (2006) finds that a 1pp rise in deficits at the Euro Area level raises long-term rates by around 40bps, close to – and if anything, higher than – the US multipliers. Considering an even wider panel of 19 OECD economies spanning 1971-2004, Noriak”
The EMU sovereign-debt crisis: Fundamentals, expectations and contagion (2012, background): “33 According to the latest forecasts, the contraction of the Greek economy, which commenced in 2009 with a 2% annual decline in real GDP, will continue in the immediate future. The spring 2010 European Commission forecast indicates that the Greek economy will contract by 3% during 2010 and by 0.5% d”
The Effects of Discretionary Fiscal Policy on Macroeconomic Aggregates: A Reappraisal (2011, methodology): “Faini (2006) investigates fiscal policy spill-over in the European Monetary Union through the interest rate channel by using single equation panel techniques.”
The Macroeconomic Costs and Benefits of the EMU and Other Monetary Unions: An Overview of Recent Research (2010, unknown): “In fact, Riccardo Faini (2006) finds for the euro-zone that a unilateral fiscal expansion raises both interest rate spreads and the overall level of the interest rate.”
Government Risk Premiums in the Bond Market: EMU and Canada (2008, unknown): “See also Afonso and Strauch (2003) and Faini (2004).”
Long-Run and Short-Run Determinants of Sovereign Bond Yields in Advanced Economies (2012, unknown): “Faini (2006) studies the case of the 10 euro area countries for the period 1979-2002.”
The Determinants of Sovereign Bond Yield Spreads in the EMU (2012, background): “standard practice in the empirical literature on EMU Equation(1) includes lagged spreads to account for spreads persistence (see also Gerlach et al., 2010). As Hallerberg and Wolff (2008) explain, while the persistent nature of spreads implies that the exclusion of the lagged spread term from the mo”
The macroeconomic effects of fiscal policy (2012, background): “For Europe, the existing evidence points either to a significant (although small) effect (Bernoth et al., 2003; Codogno et al., 2003; Faini, 2006; Afonso and Strauch, 2007), or to the absence of impact (HeppkeFalk and Hufner, 2004).”
Bond Yields in Emerging Economies: It Matters What State You are in (2012, unknown): “Moreover, a majority of studies finds that the effect of fiscal policy on interest rates is larger when the fiscal deficit rather than public debt is included as an explanatory variable (Faini, 2006; Laubach, 2009).”