Khabar is the leading print magazine in the south asian community since 1992. Use for blank tiles max 2 advanced search advanced search. Monogbe tunde gabriel, davies nkanbia llewellyn, monetary and fiscal policy, tools for economic growth. This paper provides an overview about the main controversial issues related to the fiscal policy. Fiscal policy and longterm growth international monetary fund. Fiscal policy in pakistan ma economics karachi university. Explaining the procyclicality of fiscal policy in developing countries by havard halland wolfson college, university of cambridge michael bleaney school of economics, university of nottingham abstract the procyclicality of fiscal policy that is prevalent in developing countries and emerging markets is well known. Economic policy may 2012 despite these important theoretical insights and strong demand by the policy process for estimates of fiscal multipliers, there is little1 empirical research trying to assess how the size of fiscal multipliers varies over the business cycle. Any change in the governments fiscal policy affects the economy as well as individuals. Xvi 20, no 2 the effectiveness of fiscal and monetary policy during the financial crisis besnik fetai see university, ilindenska bb, tetovo, fyrom abstract the objective of this paper is to assess the effectiveness of monetary and fiscal. The government is involved in fiscal policy any time that it makes payments, purchases goods and services, or even collects taxes. The great recession has severely hit the economies of most of the countries. For over 20 years, khabar has served the indian community in georgia with a free subscription based magazine.
The central governments budget reflects a prudent fiscal stance, with the fiscal deficit anticipated at 3. Monetary policy, fiscal policy, and the efficiency of our. Information about the openaccess journal journal of islamic monetary economics and finance in doaj. Chapter 4 fiscal policy and fiscal deficit in india. It used pair wise grouping of fiscal indicator and factor to evaluate the association of fiscal policy. Fiscal policy makes a quiet turn toward stimulus wsj. With a view to modernise and standardise the implementation process, mid term budget at the macrolevel was launched and steps have been taken to implement it. This article aims at determining the impact of various components of fiscal policy on the nigerian economy. A common feature of dutch fiscal policy since 1814 is that excessive debt is not.
In the wall street journal, alan blinder of princeton university says that fiscal policy measures that might improve the economy are paralyzed by political partisanship. College of commerece and business administartion sector42. The effectiveness of monetary policy and fiscal policy in bangladesh labonnya sadia chowdhury university of liberal arts, bangladesh munshi naser ibne afzal shahjalal university of science and technology, bangladesh keynesian and the monetarist theorists have been debating for a long time on the effectiveness of fiscal and monetary policy. Benefits to authors we also provide many author benefits, such as free pdfs, a liberal policy, special discounts on elsevier publications and much more. The longterm impact of inflation can damage the standard of living as much as a recession. An analysis of pakistans economy goher fatima, ather maqsood ahmed, and wali ur rehman international journal of trade, economics and finance, vol. It includes tax revenue, nontax revenue, and surcharges. This paper is set out to investigate monetary and fiscal policy has tools for economic growth in nigeria and to also investigate which of this tools is most appropriate in the nigerian present state of economy using time series data spanning from 1981 to 2014. Given that, fiscal policies have gained back a central role in the debate as a tool to recover from this situation. The results imply that its better to examine different aspects of fiscal policy instead of fiscal policy variables in aggregate form as the impact of fiscal policy variables in aggregate and disaggregate form do not comply with each other. This paper has examined linear as well as nonlinear impact of fiscal policy variables on private investment in pakistan. Imf 2001b, manual on fiscal transparency, international monetary fund, washington dc. The relationship between fiscal policy and economic growth in nigeria 1991 2005 appah ebimobowei department of business education bayelsa state college of education okpoama email.
In the wall street journal, alan blinder of princeton university says that fiscalpolicy measures that might improve the economy are paralyzed by political partisanship. Friedman william joseph maier professor of political economy harvard university i am enormously grateful to rich clarida and je. This paper aims to examine the effects of fiscal policy associated with increases in government expenditures, tax revenue and budget deficit on the south african economy. Perspective of the new growth theories, journal of economic literature, vol. India monetary policy feb 2017 business research and. The fiscal theory of price level suggests that persistent budget. This is necessary because of the current demands of the academic staff union. Private investment and fiscal policy in pakistan by. Fiscal policy procyclicality and output forecast errors. Alexander barkawi is founder and director of the council on economic policies cep.
Fiscal policyomics internationalbusiness and economics. Pdf the impact of fiscal policy on inflation in nigeria. The emphasis is on quantitative or analytical work, which is novel and relevant. Fiscal policy is the means by which the government adjusts its spending and revenue to influence. We employ historical data, recent crosssection data, and newly constructed public investment series. Fiscal policy referred to the handling and maintaining of the budget by the. Vuletin, 2015, fiscal policy procyclicality and output forecast errors, policy brief no. Fiscal multipliers and the state of the economy1 prepared by anja baum, marcos poplawskiribeiro, and anke weber authorized for distribution by martine guerguil december 2012 abstract only a few empirical studies have analyzed the relationship between fiscal multipliers and the underlying state of the economy. Explaining the procyclicality of fiscal policy in developing.
List of books and articles about fiscal policy online. Eastwest journal of economics and business 53 journal of economics and business vol. Dec 08, 20 expansionary fiscal policy expansionary fiscal policy means that the government is increasing government spending and reducing taxation in an attempt to increase the money available in the economy. Quard decomposition identification scheme were used in the empirical analysis. With the aid of quarterly data covering the period 1990. Fiscal policy in pakistan government receipts the government receipts consist of the following four sources. Fiscal policy, stabilization, and growth publications inter. The journal of monetary economics has eight regular issues per year, with the carnegierochester conference series on public policy as the january and july issues. Please note the journal now requires authors to complete their licence to publish form online. The relevant empirical literature is outlined in section 3. Fiscal policy is a policy of governments actions and reactions. Eastwest journal of economics and business journal of economics and business vol.
An open economy analysis article pdf available july 2016 with 196 reads how we measure reads. Fiscal policyomics internationalbusiness and economics journal. The tax cuts and jobs act made dramatic changes to federal tax law. Published in south asian journal of management sciences vol. Pdf effectiveness of monetary and fiscal policies in. This work attempts to see the impact of fiscal policy on inflation. Journal of public economics 74 1999 171190 173 the key predictions of recent public policy endogenous growth models and discuss the implications of the government budget constraint for empirical testing. Monetary and fiscal policy, tools for economic growth. Private investment and fiscal policy in pakistan by malik. Uncertainty about the effects of demonetisation and sticky core inflation were factors. Pdf fiscal policy, employment, and output in south.
We thank an anonymous referee and the associate editor for their insightful comments. Price stability is considered as an important objective of macroeconomic policies in pakistan. This paper describes the empirical regularities relating fiscal policy variables, the level of development and the rate of growth. Fiscal policy of pakistan definition according to semuelson. Government receipts the government receipts consist of the following four sources. A read is counted each time someone views a publication summary such as the title, abstract, and list of authors, clicks on a figure, or views or downloads the fulltext. Its goal is to slow economic growth and stamp out inflation. We thank participants at various seminars and conferences. An attempt has been made to study fiscal deficit, steady state debt income ratio and decade wise decomposition of accumulation of debt in this chapter. Fiscal policy is concerned with all those activities which are adopted by the government to collect revenues and make the expenditures so that economic stability could be attained without inflation and deflation. An equilibrium model of the business cycle, journal of political. To control inflation, it is important to know what factors are working behind price fluctuations. Even under an appropriate monetary policy rule, fiscal dominance would lead to high and volatile inflation and cause large losses fiscal dominance would also lead to credibility problems which would worsen economic conditions macroeconomic performance can be improved considerably if fiscal policy takes the responsibility to.
This paper was previously circulated as the effect of fiscal policy and corruption control mechanisms on firms growth and social welfare. Economic policy welcomes submissions of papers in all fields of economics but characterised by a significant policy content, which should not come at the expenses of rigour of their theoretical framework and empirical analysis. The effectiveness of fiscal and monetary policy during the. The efficiency of fiscal policy is also evaluated in a context of economic. India monetary policy feb 2017 the rbi, somewhat surprisingly, maintained the policy repo rate at 6. The tools of contractionary fiscal policy are used in reverse. The study on fiscal policy examined the developing methodology for evaluating simultaneous shocks that were used for one or. Fiscal policy makes a quiet turn toward stimulus shift in political winds toward populism weakens appetite for austerity. Nigerian experience, international journal of finance and banking research. Fiscal policy as an instrument of investment and growth.
Consolidation plans, journal of international economics 96s1, july, pp. The consequences of fiscal and monetary policies depend on the dominance of fiscal and monetary policies. Gt t g contractionary fiscal policy contractionary fiscal policy is when the government increases taxation and reduces government spending. Fiscal policy is an effective tool for supporting growth. Munich personal repec archive impact of fiscal policy on the economy of pakistan. In pakistan, the heavy dependence is upon revenue receipts, about 6570% of the revenue is estimated to be drawn from revenue receipts. The journal of development economics publishes original research papers relating to all aspects of economic development from immediate policy concerns to structural problems of underdevelopment. Fiscal policy after the great recession alberto alesina. The macroeconomic effects of fiscal policy european central bank. Fiscal multipliers and the state of the economy1 prepared by anja baum, marcos poplawskiribeiro, and anke weber authorized for distribution by martine guerguil december 2012 abstract only a few empirical studies have analyzed the relationship between fiscal multipliers and the underlying state of. The purpose of this paper is to investigate the effects of fiscal policy on economic growth under contributions from the differences in institutions and external debt levels. In economics and political science, fiscal policy is the use of government revenue collection taxes or tax cuts and expenditure spending to influence a. Expansionary fiscal policy expansionary fiscal policy means that the government is increasing government spending and reducing taxation in an attempt to increase the money available in the economy.
Iss is disseminated in the form of books, journal articles, teaching texts, monographs and working papers. Cep is an international nonprofit nonpartisan economic policy think tank for sustainability focused on fiscal, monetary and trade policy. Bleaney, norman gemmellab, b anational institute for economic and social research,london uk bschool of economics,university of nottingham nottingham uk. The effectiveness of monetary policy and fiscal policy in. F iscal policy is the use of government spending and taxation to in. The relation between monetary policy and financial policy. Write either expansionary or contractionary next to your response and explain your reasons for your choice. Fiscal policy, employment, and output in south africa.
Tools of fiscal policy westerville city school district. Fiscal policy in economics and political science is the means by which government revenue collection taxation and government expenditure spending. Scribd is the worlds largest social reading and publishing site. We simply used descriptive statistics to show contribution of government fiscal policy to economic growth, and to ascertain and explain growth rates, and an ordinary least square ols in a multiple form to ascertain the relationship between economic growth and government expenditure. The second type of fiscal policy is contractionary fiscal policy, which is rarely used. The effectiveness of fiscal policy is an interesting field in literature of macroeconomics. This paper attempts to analyze the economic development and fiscal policy in indonesia. Thanks in large part to recently enacted tax cuts, u. Fiscal policy was aimed at ensuring macroeconomic stability and attaining rapid economic growth by maintaining a balance between revenue earning and spending. The fiscal policy of a government has a direct influence on that countrys economy. The government receipts consist of the following four sources. Fiscal policy in good times and bad san francisco fed. Pierre monnin is a fellow with cep where he is focusing on the links between monetary policy and sustainability.
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