The Rafael del Pino Foundation wishes to make available knowledge on the impact on the Spanish economy of alternative economic policy measures aimed at promoting macroeconomic stability, full employment, economic growth and social cohesion. To this end, it offers simulation exercises that allow us to know the estimated effect of these measures.
Fiscal stimulus simulator
Starting from the REMS model (dynamic general equilibrium model, designed for the evaluation and simulation of economic policies), we have built this tool in order to simulate the evolution of GDP and employment, depending on the modification of three variables: the fiscal policy (increase in public spending or reduction of different taxes), the consolidation instrument (fiscal instrument that the government would use to adjust the debt-to-GDP ratio to its initial level) and the speed of consolidation (time it will take for the government to activate the consolidation instrument).
Technical information:
The GDP and employment data used in the simulations are based on the projections made by the Ministry of Economy in the framework of the Stability Programme 2022-2025.
In order to make the different fiscal policies simulated comparable, it has been decided that the impact of all of them should be an increase in the public deficit equivalent to one percentage point of GDP. Likewise, the fiscal rule used guarantees that, given the same volume of deficit, the correction to make the debt sustainable is always of identical magnitude, regardless of the policy being simulated.