{
  "title": "Fiscal Impulses and their Fiscal Impact",
  "publication": "IMF Working Papers, May 1, 1992",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-impulses-and-their-fiscal-impact-788",
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  "summary": "Fiscal impulse measures are used in the WEO and elsewhere to indicate the changing impact of the budget on the economy. Such measures are intended to provide more accurate indications of whether the budget is becoming more or less expansionary than would just observing moments in the actual budget b",
  "sections": [
    {
      "heading": "Summary and main findings",
      "content": "- Fiscal impulse measures are used in the WEO and elsewhere to indicate the changing impact of the budget on the economy.\n- Such measures are intended to provide more accurate indications of whether the budget is becoming more or less expansionary than would just observing moments in the actual budget balance.\n- The measure has been criticized for lacking an analytical rationale.\n- This paper uses a simple framework to show that the fiscal impulse measure can be analytically derived.\n- While deriving the measure removes one source of criticism, the measure nevertheless should be used carefully when making inferences of fiscal impact."
    },
    {
      "heading": "Analytical framework and interpretation",
      "content": "- The paper employs a simple analytical framework to derive the fiscal impulse measure.\n- Demonstrates that an analytically derived fiscal impulse measure can provide a theoretically grounded indicator of the changing fiscal stance.\n- Emphasizes limitations: even when analytically derived, the fiscal impulse measure requires careful interpretation when inferring actual fiscal impact on the economy."
    },
    {
      "heading": "Policy relevance and cautions for use",
      "content": "- Fiscal impulse measures can improve diagnosis of whether fiscal policy is becoming more or less expansionary compared with raw budget-balance observations.\n- Users should be cautious when making inferences of fiscal impact from the fiscal impulse measure despite its analytical derivation.\n- Applicable topics and policy areas include: Budget planning and preparation; Consumption; Expenditure; Fiscal policy; Macro-fiscal analysis; National accounts; Public financial management (PFM)."
    },
    {
      "heading": "Publication and metadata",
      "content": "- Author: Sheetal K. Chand\n- Date: May 1, 1992\n- Series: Working Paper No. 1992/038\n- Issue: 038\n- Volume: 1992\n- Pages: 18\n- DOI: https://doi.org/10.5089/9781451977530.001\n- Stock No: WPIEA0381992\n- ISBN: 9781451977530\n- ISSN: 1018-5941\n- Subjects and keywords: Budget planning and preparation, Consumption, Expenditure, Fiscal policy, Macro-fiscal analysis, National accounts, Public financial management (PFM); aggregate demand, aggregate demand impact, Consumption, consumption function, deficit measure, effect of the budget, government expenditure, government expenditures g, impulse measure, inflation-adjusted deficit, output effect, pump priming, real rate of interest, revenue effect, revenue response, WP\n\nIMF Working Paper — Sheetal K. Chand, \"Fiscal Impulses and their Fiscal Impact\", 1992/038 (May 1, 1992), DOI: https://doi.org/10.5089/9781451977530.001\n\n---\n\n\nSource: https://www.imf.org/en/publications/wp/issues/2016/12/30/fiscal-impulses-and-their-fiscal-impact-788"
    }
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    "Authors: Sheetal K. Chand",
    "Published: May 1, 1992",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781451977530.001",
    "Fiscal impulse measures are used in the WEO and elsewhere to indicate the changing impact of the budget on the economy.",
    "Such measures are intended to provide more accurate indications of whether the budget is becoming more or less expansionary than would just observing moments in the actual budget balance.",
    "The measure has been criticized for lacking an analytical rationale.",
    "This paper uses a simple framework to show that the fiscal impulse measure can be analytically derived.",
    "While deriving the measure removes one source of criticism, the measure nevertheless should be used carefully when making inferences of fiscal impact.",
    "The paper employs a simple analytical framework to derive the fiscal impulse measure.",
    "Demonstrates that an analytically derived fiscal impulse measure can provide a theoretically grounded indicator of the changing fiscal stance.",
    "Emphasizes limitations: even when analytically derived, the fiscal impulse measure requires careful interpretation when inferring actual fiscal impact on the economy.",
    "Fiscal impulse measures can improve diagnosis of whether fiscal policy is becoming more or less expansionary compared with raw budget-balance observations.",
    "Users should be cautious when making inferences of fiscal impact from the fiscal impulse measure despite its analytical derivation.",
    "Applicable topics and policy areas include: Budget planning and preparation; Consumption; Expenditure; Fiscal policy; Macro-fiscal analysis; National accounts; Public financial management (PFM).",
    "Author: Sheetal K. Chand",
    "Date: May 1, 1992",
    "Series: Working Paper No. 1992/038",
    "Issue: 038",
    "Volume: 1992",
    "Pages: 18",
    "DOI: https://doi.org/10.5089/9781451977530.001",
    "Stock No: WPIEA0381992",
    "ISBN: 9781451977530",
    "ISSN: 1018-5941",
    "Subjects and keywords: Budget planning and preparation, Consumption, Expenditure, Fiscal policy, Macro-fiscal analysis, National accounts, Public financial management (PFM); aggregate demand, aggregate demand impact, Consumption, consumption function, deficit measure, effect of the budget, government expenditure, government expenditures g, impulse measure, inflation-adjusted deficit, output effect, pump priming, real rate of interest, revenue effect, revenue response, WP"
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