Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland
Although Hungary and Iceland suffered a similar fall in GDP, their respective governments decided to follow different strategies of adjustment. Each country cut spending according to different priorities. Moreover, the Hungarian government implemented a flat tax reform, while the Icelandic governmen...
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ftrepec:oai:RePEc:pal:compes:v:57:y:2015:i:4:p:623-654 2024-04-14T08:13:22+00:00 Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland Bruno Martorano http://www.palgrave-journals.com/ces/journal/v57/n4/pdf/ces201522a.pdf http://www.palgrave-journals.com/ces/journal/v57/n4/full/ces201522a.html unknown http://www.palgrave-journals.com/ces/journal/v57/n4/pdf/ces201522a.pdf http://www.palgrave-journals.com/ces/journal/v57/n4/full/ces201522a.html article ftrepec 2024-03-19T10:27:52Z Although Hungary and Iceland suffered a similar fall in GDP, their respective governments decided to follow different strategies of adjustment. Each country cut spending according to different priorities. Moreover, the Hungarian government implemented a flat tax reform, while the Icelandic government replaced the previous flat tax system with a progressive structure. As a result, Iceland met the objectives of the IMF program, while worsening economic conditions forced Hungary to ask for additional external help. In terms of income distribution, social transfers contributed to reducing inequality in Iceland but not in Hungary, while the different tax strategies operated in contrary ways. Article in Journal/Newspaper Iceland RePEc (Research Papers in Economics) |
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Open Polar |
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RePEc (Research Papers in Economics) |
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Although Hungary and Iceland suffered a similar fall in GDP, their respective governments decided to follow different strategies of adjustment. Each country cut spending according to different priorities. Moreover, the Hungarian government implemented a flat tax reform, while the Icelandic government replaced the previous flat tax system with a progressive structure. As a result, Iceland met the objectives of the IMF program, while worsening economic conditions forced Hungary to ask for additional external help. In terms of income distribution, social transfers contributed to reducing inequality in Iceland but not in Hungary, while the different tax strategies operated in contrary ways. |
format |
Article in Journal/Newspaper |
author |
Bruno Martorano |
spellingShingle |
Bruno Martorano Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland |
author_facet |
Bruno Martorano |
author_sort |
Bruno Martorano |
title |
Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland |
title_short |
Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland |
title_full |
Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland |
title_fullStr |
Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland |
title_full_unstemmed |
Is It Possible to Adjust ‘With a Human Face’? Differences in Fiscal Consolidation Strategies between Hungary and Iceland |
title_sort |
is it possible to adjust ‘with a human face’? differences in fiscal consolidation strategies between hungary and iceland |
url |
http://www.palgrave-journals.com/ces/journal/v57/n4/pdf/ces201522a.pdf http://www.palgrave-journals.com/ces/journal/v57/n4/full/ces201522a.html |
genre |
Iceland |
genre_facet |
Iceland |
op_relation |
http://www.palgrave-journals.com/ces/journal/v57/n4/pdf/ces201522a.pdf http://www.palgrave-journals.com/ces/journal/v57/n4/full/ces201522a.html |
_version_ |
1796311329655488512 |