The Leading eBooks Store Online 4,353,660 members ⚫ 1,442,818 ebooks

New to eBooks.com?

Learn more

"Fiscal Devaluation" and Fiscal Consolidation: The VAT in Troubled Times

Fiscal Devaluation and Fiscal Consolidation: The VAT in Troubled Times by Michael Keen
Buy this eBook
US$ 9.00
(If any tax is payable it will be calculated and shown at checkout.)
This paper focuses on two core tax design issues that arise in addressing current fiscal challenges. It first explores the idea, prominent in troubled Eurozone countries, of a "fiscal devaluation": shifting from social contributions to the VAT as a way to mimic a nominal devaluation. Empirical evidence is presented which suggests that in Eurozone countries this may indeed improve the trade balance in the short-run, though, as theory predicts, the effects eventually disappear. The paper then assesses the wider scope for VAT reform in meeting fiscal consolidation needs, developing and beginning to apply a methodology for finding additional VAT revenue in ways less distortionary and fairer than further raising the standard rate.
International Monetary Fund; March 2012
48 pages; ISBN 9781475570663
Read online, or download in secure EPUB or secure PDF format
Title: "Fiscal Devaluation" and Fiscal Consolidation: The VAT in Troubled Times
Author: Michael Keen; Ruud A. de Mooij