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Fiscal policy
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In economics and political science, fiscal policy is the use of government revenue collection (mainly taxes) and expenditure (spending) to influence the economy. According to Keynesian economics, when the government changes the levels of taxation and government spending, it influences aggregate demand and the level of economic activity. Fiscal policy is often used to stabilize the economy over the course of the business cycle.[1]
Changes in the level and composition of taxation and government spending can affect the following macroeconomic variables, amongst others:
Aggregate demand and the level of economic activity;
Saving and investment;
Income distribution.
Fiscal policy can be distinguished from monetary policy, in that fiscal policy deals with taxation and government spending and is often administered by an executive under laws of a legislature, whereas monetary policy deals with the money supply and interest rates and is often administered by a central bank.
Contents
1 Stances
1.1 Methods of funding
1.2 Borrowing
1.3 Consuming prior surpluses
2 Economic effects
3 Fiscal straitjacket
4 See also
5 References
6 Bibliography
7 External links
Stances[edit]
The three stances of fiscal policy are:
Neutral fiscal policy is usually undertaken when an economy is in neither a recession nor a boom. The amount of government deficit spending (the excess not financed by tax revenue) is roughly the same as it has been on average over time, so no changes to it are occurring that would have an effect on the level of economic activity.
Expansionary fiscal policy involves government spending exceeding tax revenue by more than it has tended to, and is usually undertaken during recessions.
Contractionary fiscal policy occurs when government deficit spending is lower than usual.
However, these definitions can be misleading because, even with no changes in spending or tax laws at all, cyclic fluctuations of the economy cause cyclic fluctuations of tax revenues and of some types of government spending, altering the deficit situation; these are not considered to be policy changes. Therefore, for purposes of the above definitions, "government spending" and "tax revenue" are normally replaced by "cyclically adjusted government spending" and "cyclically adjusted tax revenue". Thus, for example, a government budget that is balanced over the course of the business cycle is considered to represent a neutral and effective fiscal policy stance.
Methods of funding[edit]
Governments spend money on a wide variety of things, from the military and police to services like education and healthcare, as well as transfer payments such as welfare benefits. This expenditure can be funded in a number of different ways:
Taxation
Seigniorage, the benefit from printing money
Borrowing money from the population or from abroad
Consumption of fiscal reserves
Sale of fixed assets (e.g., land)
It should be noted that even though printing has not been mentioned above, some countries have actually used it, an example is Zimbabwe and Germany. The method is however inflationary.
Borrowing[edit]
A fiscal deficit is often funded by issuing bonds, like treasury bills or consols and gilt-edged securities. These pay interest, either for a fixed period or indefinitely. If the interest and capital requirements are too large, a nation may default on its debts, usually to foreign creditors. Public debt or borrowing refers to the government borrowing from the public.
Consuming prior surpluses[edit]
A fiscal surplus is often saved for future use, and may be invested in either local currency or any financial instrument that may be traded later once resources are needed.
Economic effects[edit]
See also: Gross fixed capital formation § Economic analysis
Keynesians argue that expansionary fiscal policy should be used in times of recession or low economic activity as an essential tool for building the framework for strong economic growth and working towards full employment. In theory, the resulting deficits would be paid for by an expanded economy during the boom that would follow; this was the reasoning behind the New Deal.
Governments can use a budget surplus to do two things: to slow the pace of strong economic growth, and to stabilize prices when inflation is too high. Keynesian theory posits that removing spending from the economy will reduce levels of aggregate demand and contract the economy, thus stabilizing prices.
But economists still debate the effectiveness of fiscal stimulus. The argument mostly centers on crowding out: whether government borrowing leads to higher interest rates that may offset the stimulative impact of spending. When the government runs a budget deficit, funds will need to come from public borrowing (the issue of government bonds), overseas borrowing, or monetizing the debt. When governments fund a deficit with the issuing of government bonds, interest rates can increase across the market, because government borrowing creates higher demand for credit in the financial markets. This causes a lower aggregate demand for goods and services, contrary to the objective of a fiscal stimulus. Neoclassical economists generally emphasize crowding out while Keynesians argue that fiscal policy can still be effective especially in a liquidity trap where, they argue, crowding out is minimal.[2]
Some classical and neoclassical economists argue that crowding out completely negates any fiscal stimulus; this is known as the Treasury View[citation needed], which Keynesian economics rejects. The Treasury View refers to the theoretical positions of classical economists in the British Treasury, who opposed Keynes' call in the 1930s for fiscal stimulus. The same general argument has been repeated by some neoclassical economists up to the present.
In the classical view, the expansionary fiscal policy also decreases net exports, which has a mitigating effect on national output and income. When government borrowing increases interest rates it attracts foreign capital from foreign investors. This is because, all other things being equal, the bonds issued from a country executing expansionary fiscal policy now offer a higher rate of return. In other words, companies wanting to finance projects must compete with their government for capital so they offer higher rates of return. To purchase bonds originating from a certain country, foreign investors must obtain that country's currency. Therefore, when foreign capital flows into the country undergoing fiscal expansion, demand for that country's currency increases. This causes the currency to appreciate, reducing the cost of imports and making exports from that country more expensive to foreigners. Consequently, exports decrease and imports increase, reducing demand from net exports.
Some economists oppose the discretionary use of fiscal stimulus because of the inside lag (the time lag involved in implementing it), which is almost inevitably long because of the substantial legislative effort involved. Further, the outside lag between the time of implementation and the time that most of the effects of the stimulus are felt could mean that the stimulus hits an already-recovering economy and exacerbates the ensuing boom rather than stimulating the economy when it needs it.
Some economists are concerned about potential inflationary effects driven by increased demand engendered by a fiscal stimulus. In theory, fiscal stimulus does not cause inflation when it uses resources that would have otherwise been idle. For instance, if a fiscal stimulus employs a worker who otherwise would have been unemployed, there is no inflationary effect; however, if the stimulus employs a worker who otherwise would have had a job, the stimulus is increasing labor demand while labor supply remains fixed, leading to wage inflation and therefore price inflation.
Fiscal straitjacket[edit]
The concept of a fiscal straitjacket is a general economic principle that suggests strict constraints on government spending and public sector borrowing, to limit or regulate the budget deficit over a time period. Most US states have balanced budget rules that prevent them from running a deficit. The United States federal government technically has a legal cap on the total amount of money it can borrow, but it is not a meaningful constraint because the cap can be raised as easily as spending can be authorized, and the cap is almost always raised before the debt gets that high.
See also[edit]
Econometrics
Fiscal Observatory of Latin America and the Caribbean
Fiscal policy of the United States
Fiscal union
Functional finance
Interaction between monetary and fiscal policies
National fiscal policy response to the late 2000s recession
Policy mix
References[edit]
Jump up ^ O'Sullivan, Arthur; Sheffrin, Steven M. (2003). Economics: Principles in Action. Upper Saddle River, New Jersey 07458: Pearson Prentice Hall. p. 387. ISBN 0-13-063085-3.
Jump up ^ "Cliff Notes, Economic Effecs of Fiscal Policy". Retrieved March 20, 2013.
Bibliography[edit]
Simonsen, M.H. The Econometrics and The State Brasilia University Editor, 1960–1964.
Heyne, P. T., Boettke, P. J., Prychitko, D. L. (2002). The Economic Way of Thinking (10th ed). Prentice Hall.
Larch, M. and J. Nogueira Martins (2009). Fiscal Policy Making in the European Union: An Assessment of Current Practice and Challenges. Routledge.
Hansen, Bent (2003). The Economic Theory of Fiscal Policy, Volume 3. Routledge.
Anderson, J. E. (2005). Fiscal Reform and its Firm-Level Effects in Eastern Europe and Central Asia, Working Papers Series wp800, William Davidson Institute at the University of Michigan.
D. Harries. Roger Fenton and the Crimean War
External links[edit]
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Using Fiscal Policy
Limitations of Fiscal Policy
What Is Fiscal Policy?
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Cueca
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People dancing Cueca in 1906.
Cueca (Spanish pronunciation: [ˈkweka]) is a family of musical styles and associated dances from Argentina, Chile and Bolivia. In Chile, the cueca holds the status of national dance, where it was officially selected on September 18, 1979.[1]
Contents
[hide]
1 Origins
1.1 History in Chile
2 Clothing and dance
3 Basic structure
4 The cueca nowadays
5 See also
6 References
7 External links
Origins[edit]
La Zamacueca, by Manuel Antonio Caro.
While cueca's origins are not clearly defined, it is considered to have mostly European Spanish and arguably indigenous influences. The most widespread version of its origins relates it with the zamacueca which arose in Peru as a variation of Spanish Fandango dancing with criollo. The dance is then thought to have passed to Chile and Bolivia, where its name was shortened and where it continued to evolve. Due to the dance's popularity in the region, the Peruvian evolution of the zamacueca was nicknamed "la chilena", "the Chilean", due to similarities between the dances. Later, after the Pacific War, the term marinera, in honor of Peru's naval combatants and because of hostile attitude towards Chile, was used in place of "la chilena." In March 1879 the writer and musician Abelardo Gamarra[2][3] renamed the “chilena” as the “marinera”.[4][5][6][7][8][9] The Marinera, Zamba and the Cueca styles are distinct from each other and from their root dance, the zamacueca.
Another theory is that Cueca originated in the early 19th century bordellos of South America, as a pas de deux facilitating partner finding.[10]
The usual interpretation of this courting dance is zoomorphic: it tries to reenact the courting ritual of a rooster and a hen. The male displays a quite enthusiastic and at times even aggressive attitude while attempting to court the female, who is elusive, defensive and demure. The dance often finishes with the man kneeling on one knee, with the woman placing her foot triumphantly on his raised knee.
In Bolivia, there are many variations throughout the different regions. Cueca styles of La Paz, Potosí and Sucre are the elegant and static versions, whereas in Cochabamba and Tarija the style is much livelier and free. The same could be said with the music where in different regions rhythm and speed slightly differ amongst the regions. While dancing, handkerchiefs are used by both male and female dancers by twirling over the head. It is said the twirling of the handkerchief is a way to lure the woman.[11]
History in Chile[edit]
In Chile the cueca was developed and spread in the bars and taverns,[12] which in the 19th century were popular centers of entertainment and parties.[13] During Fred Warpole’s stay in Chile between 1844 and 1848 he described some of the characteristics of the dance: guitar or harp accompaniment, drumming of hands or a tambourine to keep the rhythm, high pitched singing and a unique strumming pattern, where the guitarist strums all of the strings, returning each time with a slap on the guitar body.[14]
During the second half of the 19th century the cueca was spread to diverse Latin American countries and the dance was known simply as the “chilena” (Chilean).[4] In Argentina the dance was first introduced in Cuyo, which is in the central west of the country close to the border with Chile; there is documented presence of the cueca in this region in approximately 1840. Unlike in the northeast and central west of Argentina in Buenos Aires the dance was known as the “cueca” instead of the “chilena” and there is documentation of the cueca being present in Buenos Aires as early as the 1850s. Similarly to the majority of Argentina the cueca was known as the “chilena” in Bolivia as well.[6] Chilean sailors and adventurers spread the cueca to the coast of Mexico[15] in the cities of Guerrero and Oaxaca, where the dance was also known as the “chilena”.[16][17] In Peru the dance transformed into one of the most popular dances during the 1860s and 1870s[18][19] and was also known as the “chilena”.[2][3][20]
During the 20th century the cueca was associated with the common man in Chile and through them the dance was spread to the pre-industrialized urban areas where it was adopted by neighborhoods like La Vega, Estación and Matadero, which at the time were located on the outskirts of the city of Santiago.[21]
The cueca was named the national dance of Chile due to its substantial presence throughout the history of the country and announced as such through a public decree in the Official Journal (Diario Oficial) on November 6, 1979.[22]
Clothing and dance[edit]
The clothing worn during the cueca dance is the traditional Chilean clothes. They wear blue, white, red or black costumes and dresses. The men in the dance wear the huaso's hat, shirts, flannel poncho, riding pants and boots, short jacket, riding boots, and spurs. Women wear flowered dresses. Cueca dancing resembles a rooster-chicken relationship. The man approaches the woman and offers his arm, then the women accompanies him and they walk around the room. They then face each other and hold their handkerchief in the air, and begin to dance. They never touch, but still maintain contact through facial expressions and movements. During the dance, the pair must wave the white handkerchief.
Basic structure[edit]
Youth dance group, Santiago.
The basic structure of the cueca is that it is a compound meter in 6
8 or 3
4 and is divided into three sections.
Some differences can be noticed depending on geographical location. There are three distinct variants in addition to the traditional cueca:
The northern cueca: The main difference with this version is that there is no singing in the accompanying music which is played with only sicus, zamponas, and brass. trumpets, tubas. Also, both the music and the dance are slower. This dance is done during religious ceremonies and carnival. (www.guitarrachilena.cl.php).
The cueca from the central region: This genre is mostly seen in Chile. The guitar, accordion, guitarron, and percussion are the prevailing instruments.
The Chiloé cueca: This form has the absence of the cuarteta. The seguidilla are repeated and there is a greater emphasis on the way the lyrics are presented by the vocalist.
The cueca nowadays[edit]
Currently, the cueca is mainly danced in the countryside, and performed throughout Chile each year during the national holidays in September 18 eve. Cueca tournaments are popular around that time of year.
In Bolivia, there are lots of different Cueca styles according to the region: Cueca Paceña, Cueca Cochabambina, Cueca Chuquisaqueña, Cueca Tarijeña, Cueca Potosina y Cueca Chaqueña. What they have in common is their rhythm, but they differ quite a lot in velocity, costumes and style. The Cueca styles of La Paz, Potosí and Sucre are the elegant ones, whereas in Cochabamba and Tarija the style is much more lively.In Bolivia, it is usually called "Cuequita Boliviana"
In Argentina, there are many ways of dancing Cueca. Cueca is mostly danced in the northern and western Argentine provinces of Mendoza, Chaco, Salta, Jujuy, Catamarca, La Rioja etc. Each Argentine province has its own style and way of dancing Cueca.
See also[edit]
Chinchinero
References[edit]
Jump up ^ http://www.memoriachilena.cl/602/w3-article-3510.html. Missing or empty |title= (help)
^ Jump up to: a b El Tunante (sábado 8 de marzo de 1879). «Crónica local - No más chilenas». El Nacional. «No más chilenas.—Los músicos y poetas criollos tratan de poner punto final a los bailes conocidos con el nombre de chilenas; quieren que lo nacional, lo formado en el país no lleve nombre extranjero: se han propuesto bautizar, pues, los bailes que tienen el aire y la letra de lo que se lla[ma]ba chilena, con el nombre de Marineras. Tal título tiene su explicación: Primero, la época de su nacimiento será conmemorativa de la toma de Antofagasta por los buques chilenos —cuestión marina. Tendrá la alegría de la marina peruana al marchar al combate —cuestión marina. Su balance gracioso imitará el vaivén de un buque sobre las ajitadas olas —cuestión marina. Su fuga será arrebatadora, llena de brío, endiablada como el combate de las dos escuadras, si llega a realizarse —cuestión marina. Por todas estas razones, los nuevos bailes se llamarán, pues, marineras en vez de chilenas. El nombre no puede ser más significativo, y los músicos y poetas criollos se hallan ocupados en componer para echar a volar por esas calles, letra y música de los nuevos bailes que se bailan, como las que fueron chilenas y que en paz descansen [...] (ortografía original)».
^ Jump up to: a b Gamarra, Abelardo M. (1899). «El baile nacional». Rasgos de pluma. Lima: V. A. Torres. p. 25. «El baile popular de nuestro tiempo se conoce con diferentes nombres [...] y hasta el año 79 era más generalizado llamarlo chilena; fuimos nosotros los que [...] creímos impropio mantener en boca del pueblo y en sus momentos de expansión semejante título y sin acuerdo de ningún concejo de Ministros, y después de meditar en el presente título, resolvimos sustituir el nombre de chilena por el de marinera (ortografía original)».
^ Jump up to: a b Chávez Marquina, Juan Carlos (2014). «Historia de Trujillo - Breve historia de la marinera». www.ilustretrujillo.com. Consultado el 4 de marzo de 2014. «Según el [...] argentino Carlos Vega, esta variante [la cueca chilena] tuvo gran éxito en la segunda mitad del siglo XIX, cuyo intercambio musical alcanzó a diversos países de Latinoamérica, incluido Perú. La "cueca" chilena fue conocida en otros países sencillamente como "la chilena", y en Perú, la primera referencia registrada apareció en el periódico El Liberal del 11 de septiembre de 1867, como un canto popular de jarana. Para aquella época, las peculiaridades de la zamacueca adoptaron diversos nombres [...]. "El baile popular de nuestro tiempo se conoce con diferentes nombres [...] y hasta el [18]79 era más generalizado llamarlo chilena; fuimos nosotros los que [...] creímos impropio mantener en boca del pueblo y en momentos de expansión semejante título, y sin acuerdo de ningún Consejo de Ministros, y después de meditar en el presente título, resolvimos sustituir el nombre de chilena por el de marinera [...]" (Gamarra)».
Jump up ^ «La marinera» (PDF). www.consuladodelperu.com.mx. s/f. p. 2. Consultado el 2 de noviembre de 2012.
^ Jump up to: a b «Danzas folklóricas argentinas: Coreografías: La cueca - la chilena o norteña» (HTM). www.folkloretradiciones.com.ar. 2005. Consultado el 2007. «Del Perú, alrededor de 1824-25, la zamacueca desciende a Chile, donde es recibida con tal entusiasmo en todas las clases sociales que se convierte en la expresión coreográfica nacional. Los chilenos, a su variante local le llamaron zamacueca chilena que, más tarde por aféresis redujeron la voz zamacueca a sus sílabas finales, cueca. Con el nombre de zamacueca primero y luego con el de cueca chilena, esta danza pantomímica de carácter amatorio pasa a [Argentina] a través de las provincias cuyanas. [En Argentina] el nombre también sufrió modificaciones; en la región de Cuyo quedó el de cueca; para las provincias del noroeste y Bolivia quedó el de chilena. En el Perú se usó también el nombre de chilena como referencia geográfica de la variante de la zamacueca, pero [...] lo cambia por el de marinera [...], nombre con el que perdura hasta hoy».
Jump up ^ Holzmann, Rodolfo (1966). Panorama de la música tradicional del Perú (1.ª edición). Lima: Casa Mozart. «El nombre de "marinera" surgió del fervor patriótico de 1879, año en que don Abelardo Gamarra, "El Tunante", bautizó con él a la hasta entonces "chilena", en homenaje a nuestra Marina de Guerra».
Jump up ^ Hurtado Riofrío, Víctor (2007). «Abelardo Gamarra Rondó "El Tunante"»(HTM). criollosperuanos.com. Consultado el 30 de mayo de 2011. «Los militares chilenos, tropas invasoras de la Restauración, trajeron de regreso a Lima a nuestra zamacueca, con ligeras variantes, así que la empezaron a llamar chilena en los ambientes militares. Pero, Abelardo Gamarra "El Tunante" [...], en 1879, logra hacer desaparecer aquel nombre bautizando a nuestro baile nacional con el nombre de "marinera"».
Jump up ^ COHEN, SUSAN J. The Twenty Piano 'cuecas' Of Simeon Roncal. (bolivia), University of Miami, Ann Arbor, 1981. ProQuest Dissertations & Theses Global, https://search.proquest.com/docview/303198415.
Jump up ^ Journeyman Pictures reporter Mark Corcoran's documentary with Mario Rojas and Pinochet-era victims' families on YouTube (please disregard political connotations)
Jump up ^ http://www.boliviabella.com/bolivian-music-types.html
Jump up ^ Pereira Salas, Eugenio (1941). Los orígenes del arte musical en Chile (PDF). Santiago: Imp. Universitaria. pp. 272-273. Consultado el 10 de mayo de 2015.
Jump up ^ D'Orbigny, Alcide, II, 1839-1843: 336. Cf. Merino. 1982: 206. D'Orbigny hace referencia a las chinganas que se hallaban en el barrio de El Almendral en Valparaíso durante 1830: «son casas públicas [...] donde se beben refrescos mientras se ve danzar la cachucha, el zapateo, etc., al son de la guitarra y de la voz; es un lugar de cita para todas las clases sociales, [...], pero donde el europeo se encuentra más frecuentemente fuera de lugar».
Jump up ^ Walpole, Fred. I. 1850:105-106. Cf. Merino 1982:207.
Jump up ^ "Cueca." Britannica Academic, Encyclopædia Britannica, 26 Aug. 2011. academic.eb.com/levels/collegiate/article/cueca/28125#.
Jump up ^ Vega, Carlos (1986). «La zamacueca (cueca, zamba, chilena, marinera)». Las danzas populares argentinas (Buenos Aires: Instituto Nacional de Musicología 'Carlos Vega') 2: 11-136.
Jump up ^ Stewart, Alex “La chilena mexicana es peruana: Multiculturalism, Regionalism, and Transnational Musical Currents in the Hispanic Pacific” Latin American Music Review-Revista de Musica Latinoamericano, vol. 34, issue 1, 2013, pp. 71-110, http://content.ebscohost.com/ContentServer.asp?EbscoContent=dGJyMMvl7ESeprQ4y9fwOLCmr0%2Bep7JSsq64SLaWxWXS&ContentCustomer=dGJyMPGuskyurK5IuePfgeyx43zx1%2BqE&T=P&P=AN&S=R&D=aph&K=89236509
Jump up ^ León, Javier F. (2014). «Marinera». Bloomsbury Encyclopedia of Popular Music of the World - Genres: Caribbean and Latin America (en inglés). vol. 9 (1.ª edición). pp. 451-453. ISBN 978-4411-4197-2. Consultado el 11 de julio de 2015. «By the 1860s, a Chilean variant [of the zamacueca] known as the chilena or cueca was the most prevalent type of zamacueca in Peru. After the War of the Pacific (1879-83) and the Chilean occupation of the city of Lima, the name of the dance was changed to marinera in honor of the Peruvian navy and it was declared the national dance of Peru».
Jump up ^ Tompkins, William David (s/f). «Afro-Peruvian Traditions». The Garland Encyclopedia of World Music (en inglés). «Probably the most important new national musical genre of the nineteenth century was the zamacueca (or zambacueca), which appeared in coastal Peru not long after 1800. Its choreographic theme, shared with dances derived from it, was a courtship pantomime performed by a man and a woman amid a crowd that accompanied them with rhythmic clapping and supportive shouting. As the dancers advanced and retreated from each other, they rhythmically and provocatively flipped a handkerchief about. The instrumentation varied, but frequently consisted of plucked stringed instruments and a percussive instrument such as the cajon. [...] The zamacueca became popular in many Latin American countries during the mid-1800s, and numerous regional and national variations developed. In the 1860s and 1870s, the zamacueca chilena, a Chilean version of it, was the most popular form in Peru».
Jump up ^ Valle Riestra, Víctor Miguel (≥ 1881). «Testimonio del coronel EP Víctor Miguel Valle Riestra sobre la destrucción de Chorrillos». Consultado el 31 de octubre de 2014. «Las coplas de la [...] chilena, se escuchaban al mismo tiempo que las oraciones de los moribundos»
Jump up ^ Claro Valdés, Samuel, Carmen Peña Fuenzalida y María Isabel Quevedo Cifuentes (1994). Chilena o cueca tradicional (PDF). Santiago, Chile: Ediciones Universidad Católica de Chile. p. 543. ISBN 956-14-0340-4. Consultado el 22 de mayo de 2015.
Jump up ^ Ministerio Secretaría General de Gobierno (06 de noviembre de 1979), «Decreto 23: Declara a la cueca danza nacional de Chile», Biblioteca del Congreso Nacional de Chile, consultado el 1 de marzo de 2011.
External links[edit]
Media related to Cueca at Wikimedia Commons
Demonstration of Bolivian cueca (and other folk dances specific to the Gran Chaco region) on YouTube
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