Naslov
Fiscal Policy in Crisis: Rethinking Austerity

Autori
Dubravko Radošević

Izvornik
Zagreb international review of economics & business (1331-5609) 15 (2012), 2; 45-60

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, pregledni rad, znanstveni

Ključne riječi
austerity ; stimulus ; NGDP targeting ; fiscal mulitplier ; full employment

Sažetak
Many macroeconomists and politicans claim that fiscal austerity – getting the budget deficit down immediately – would be good for employment and growth. We think that fiscal stimulus is expansionary, and fiscal contraction is contractionary. There is a large and growing body of literature that shows that fiscal expansion can help economy to grow and reduce unemployment in near term ; that certain types of fiscal stimulus are very effective and that fiscal contractions tend to lower output and employment in the short run. Fiscal austerity may be desirable for the long-term solvency and health of the economy. But it lowers growth and raises unemployment in the near term. A policy mix between new monetary strategy (nominal GDP targeting) and fiscal stimulus would be especially effective.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA