A Review of macroeconomic effects of fiscal policy

Authors

  • Karuna

Keywords:

fiscal policy, Bayesian structural VAR

Abstract

Fiscal policy deals with the taxation and expenditure decisions of the government. Monetary policy, deals with the supply of money in the economy and the rate of interest. These are the main policy approaches used by economic managers to steer the broad aspects of the economy. In most modern economies, the government deals with fiscal policy while the central bank is responsible for monetary policy. Fiscal policy is composed of several parts. These include, tax policy, expenditure policy, investment or disinvestment strategies and debt or surplus management. Fiscal policy is an important constituent of the overall economic framework of a country and is therefore intimately linked with its general economic policy strategy.

References

Afonso , A . 2008 . Ricardian fiscal regimes in the European Union . Empirica , 35 : 313 – 34

Afonso , A . 2010 . Expansionary fiscal consolidations in Europe: new evidence . Applied Economics Letters , 17 : 105 – 9 .

Afonso , A and Claeys , P . 2008 . The dynamic behaviour of budget components and output . Economic Modelling , 25 : 93 – 117 .

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Published

30-06-2013

How to Cite

Karuna. (2013). A Review of macroeconomic effects of fiscal policy. International Journal for Research Publication and Seminar, 4(1), 1. Retrieved from https://jrps.shodhsagar.com/index.php/j/article/view/14

Issue

Vol. 4 No. 1 (2013): Volume 4 | Issue 1 | Jan-Jun 2013

Section

Original Research Article

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