The Role of Fiscal Policy in a Monetary Union: are National Automatic Stabilizers Effective?

TThe use of large fiscal stimulus packages to dampen the impact of Covid-19 recently has raised concerns about the effectiveness of the discretionary fiscal policy. This paper aims at analysing the feasibility of automatic fiscal stabilisers to mitigate economic fluctuations in the case of Indonesia. Using the IMF standard model for quarterly data over the period of 2001(1) to 2019(4), we find that the role of automatic fiscal stabilisers is getting greater both in revenue and spending. This implies that the automatic fiscal stabilisers are feasible as the main fiscal policy instrument for economic stability goals in the future. However, given the existing circumstances, Indonesia has to reform economic, regulatory, and institutional ecosystems in adopting the automatic fiscal stabilisers.

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Fiscal policy over the cycle: the role of automatic stabilizers

Applied Economics Letters ◽

10.1080/13504851.2015.1026575 ◽

2015 ◽

Vol 22 (16) ◽

pp. 1298-1302 ◽

Cited By ~ 1

Author(s):

Alexander Klemm

Keyword(s):

Fiscal Policy ◽

Automatic Stabilizers

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The real exchange rate, fiscal policy and the role of wealth an analysis of equilibrium in a monetary union

Journal of Forecasting ◽

10.1002/for.3980110505 ◽

1992 ◽

Vol 11 (5) ◽

pp. 361-388 ◽

Cited By ~ 4

Author(s):

R. Barrell ◽

J. W. In't Veld ◽

A. Gurney

Keyword(s):

Exchange Rate ◽

Fiscal Policy ◽

Real Exchange Rate ◽

Monetary Union ◽

The Real

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Evaluation of Fiscal Policy Effect of China’s Photovoltaic Industry

Light & Engineering ◽

10.33383/2018-123 ◽

2018 ◽

pp. 111-116 ◽

Cited By ~ 1

Author(s):

Gang AN ◽

Hang WANG

Keyword(s):

Fiscal Policy ◽

Research And Development ◽

Operating Performance ◽

Fiscal Policies ◽

Micro Data ◽

Policy Effect ◽

Policy Suggestions ◽

Asset Size ◽

The Empirical Analysis

To explore the role of fiscal policies in promoting the development of photovoltaic industry, the effects of financial subsidies on the development of China’s photovoltaic industry were analyzed by using the micro data of listed companies. The empirical analysis results in this study indicate that the fiscal policies represented by financial subsidies play a remarkable positive impetus function and financial subsidies are positively correlated with the operating performance of Photovoltaic enterprises. With larger the asset size and higher the Research and Development (R&D) investments, the operating performance of Photovoltaic enterprises is the better. Based on the above results, this study puts forward some policy suggestions on optimizing fiscal policy tools and further promoting the development of photovoltaic industry.

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Book Reviews

Acta Oeconomica ◽

10.1556/aoecon.56.2006.4.5 ◽

2006 ◽

Vol 56 (4) ◽

pp. 455-468

Author(s):

Zoltán Ádám ◽

László Csaba ◽

András Bakács ◽

Zoltán Pogátsa

Keyword(s):

Developing Countries ◽

Fiscal Policy ◽

Monetary Union ◽

Economic And Monetary Union ◽

European Studies ◽

Eu Accession ◽

East European ◽

The World ◽

The Government

István Csillag - Péter Mihályi: Kettős kötés: A stabilizáció és a reformok 18 hónapja [Double Bandage: The 18 Months of Stabilisation and Reforms] (Budapest: Globális Tudás Alapítvány, 2006, 144 pp.) Reviewed by Zoltán Ádám; Marco Buti - Daniele Franco: Fiscal Policy in Economic and Monetary Union. Theory, Evidence and Institutions (Cheltenham/UK - Northampton/MA/USA: Edward Elgar Publishing Co., 2005, 320 pp.) Reviewed by László Csaba; Piotr Jaworski - Tomasz Mickiewicz (eds): Polish EU Accession in Comparative Perspective: Macroeconomics, Finance and the Government (School of Slavonic and East European Studies, University College of London, 2006, 171 pp.) Reviewed by András Bakács; Is FDI Based R&D Really Growing in Developing Countries? The World Investment Report 2005. Reviewed by Zoltán Pogátsa

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