Public finance, economic policy

Macroeconomic Impacts of Fiscal Devaluation

This study on the macroeconomic effects of fiscal devaluation analyzes the outcomes of a cut in employers’ social security contributions and increase in VAT rate. The aim of the policy is to correct external imbalances and to boost growth, employment and competitiveness. The outcomes of the measure are simulated using the multi-country macroeconomic model Nigem,