The Effectiveness of Fiscal Policy in Combating Economic Crisis. An Analysis Based on the Economic Literature

Theoretical and Applied Economics

卷:XVII

Marius-Corneliu MARINA޹ 

[1] Bucharest Academy of Economic Studies;

关键词: fiscal policy;    fiscal multipliers;    neo-Keynesian;    automatic stabilizers;   

DOI  :  

来源: DOAJ

【 摘 要 】

The objective of this research is to identify, in theeconomic literature, the main factors which constrain the transmission ofthe fiscal shocks to the real economy. The interest in finding the mostefficient fiscal stimuli in recovery the economies passing through crisisperiod has got increased as soon as the expansionary monetary policypromoted by most of the central banks has not generated an increase ofthe confidence in the private economic agents and, as a consequence, anincrease of consumption and of the private investments. Even though itrepresents the Keynesian solution for recovery the economies which havebeen affected by the crisis, the fiscal expansion promoted during therecession periods does not generate the same expected positive effectsany more (increase of consumption, significant decrease ofunemployment, increase of revenues in economy), as they are conditionedby the reaction of the private economic agents to the fiscal stimuli. Forexample, the decision to decrease taxation may not automaticallygenerate the significant increase of consumption (a condition forspreading the multiplier effect in economy), under the terms of pessimismor of the difficulty to access loans. As a result, the fiscal multipliers tendto be rather proper, and their value decreases more during the deepeconomic recession periods.

【 授权许可】

Unknown