THE IMPACT OF DEFLATION ON FISCAL AGGREGATES

This article addresses the phenomenon of deflation from a historical perspective, a phenomenon rarely encountered in our day. Deflation is generally defined as the fall in the aggregate level of the consumer price index, respectively, the reverse inflationary phenomenon. The article also presents, in addition to experiences in different countries in times when deflation has been more pronounced and longer, and the effects it may have on public finance aggregates. The paper analyses the literature of all time that deals with the subject, as well as a presentation of the empirical data recorded, and an econometric analysis wishing to highlight the impact that the aggregate index of prices may have on public debt, using data recorded in Romania during 2000-2017

Tax Competition – Beneficial or Harmful? How Various Tax Measures Affect the Allocation of Resources?

Fiscal competition has been in the news ever since the OECD launched a campaign against “harmful tax competition” in 1996. Nor is it likely to disappear any time soon. Instead, it is likely to intensify, as more and more governments resort to lower taxes to stimulate their economies. Is all tax competition harmful, or is it possible to distinguish between harmful and beneficial tax competition? In this paper, in its first part, I try to present the difference between benefit and harmful tax competition. Also, the paper try to establish how really is tax competition – “harmful” or “beneficial”. The second parts of this paper analyze the impact and efficiency of different tax measures in allocation of public resources.tax competition, tax measures, allocation of resources, harmful tax competition