Fiscal Policy For A Balanced Economy

The recent recession has brought fiscal policy back to the forefront, with economists and policy makers struggling to reach a consensus on highly political issues like tax rates and government spending. At the heart of the debate are fiscal multipliers, whose size and sensitivity determine the power of such policies to influence economic growth. Fiscal Policy after the Financial Crisis focuses on the effects of fiscal stimuli and increased government spending, with contributions that consider the measurement of the multiplier effect and its size. In the face of uncertainty over the sustainability of recent economic policies, further contributions to this volume discuss the merits of alternate means of debt reduction through decreased government spending or increased taxes. A final section examines how the short-term political forces driving fiscal policy might be balanced with aspects of the long-term planning governing monetary policy. A direct intervention in timely debates, Fiscal Policy after the Financial Crisis offers invaluable insights about various responses to the recent financial crisis.

Report on the use of fiscal policy as an instrument for maintaining economic balance. Study of the extent to which fiscal policy has been used in different countries (Belgium, France, Germany, Italy, Sweden, U.K. and U.S.A.); of the limitations, political and other, that have been found to its use; how far it would be possible and desirable to introduce changes which would increase the scope for fiscal policy; and of the general lessons to be drawn from a comparison of different countries' experiences.

Working paper on the impact of alternative fiscal policies on the economy of the USA - examines three policy rules over three periods representing different phases of the business cycle, (1) balancing the national budget, (2) a full employment budget and (3) a discretionary fiscal policy, and concludes in favour of the last. References and statistical tables.

Fiscal Policy for a Balanced Economy