Fiscal policy

Fiscal policy latest publications

September 16, 2019

Mario Draghi: Monetary Policy Is Not Sufficient

At its meeting last Thursday, the European Central Bank (ECB) launched a comprehensive package of easing measures, as Draghi had—for all intents and purposes—been signaling over recent months (in his speech at Sintra and, most significantly, at July's monetary policy meeting).

September 9, 2019

The Tax Burden in Spain: Too High or Too Low?

One of the most hotly debated political issues during the last elections was the margin that Spain has for raising and lowering taxes.

September 2, 2019

Is there room for expansionary fiscal policies?

Last week, the annual economic policy symposium was held in Jackson Hole. This year's theme was the challenges for monetary policy. Although fiscal policy was not the subject of debate, it cast a shadow over the event.

August 22, 2019

Mexico | Economic recovery by reducing the income tax rate for low-income taxpayers

Despite the reduced fiscal space, we consider it desirable to boost private consumption and, by the same token, aggregate demand by reducing the target for the 2019 primary balance to 0.5% of GDP.

August 22, 2019

Approaching fiscal stimulus in Germany

Faced with a 0.1% GDP contraction in the second quarter and the possibility of a third-quarter repeat—as raised recently by the Bundesbank—there is speculation that the German government may approve a stimulus package of up to EUR 50 billion (1.5% of GDP).

August 15, 2019

Mexico needs a counter-cyclical fiscal policy; a fiscal council would help

Considering the current circumstances of almost zero economic growth, there is no need to aim for a primary surplus similar to the one planned for this year (1% of GDP) in 2020. If properly reported, a smaller primary surplus may be welcomed by the markets.

July 23, 2019

Spain | Uncertainty around fiscal policy in the 2019-20 period

Budget implementation in April 2019 slightly worsens the dynamics of 2018. During the 2019-2020 period, and in no policy change scenario, the pace of adjustment of the public deficit would be moderating compared to that observed in previous years

June 27, 2019

Seismic waves in global trade

Recent weeks have seen an escalation of restrictive measures and trade retaliation between the US and China, as well as restrictions placed on the activity and investment of foreign technology companies in domestic markets or the announcement of further tariffs imposed by the US to Mexico.