Commentary: the Policy Framework

2008 ◽  
Vol 206 ◽  
pp. 68-73
Author(s):  
Martin Weale
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Policy Framework ◽  
The Past ◽  
Policy Goals ◽  
Fiscal Balance ◽  
The Government ◽  
Monetary And Fiscal Policy

The Government, when it came to power in 1997, adopted a monetary and fiscal policy framework which was intended to deliver low and stable inflation, high and stable economic growth and fiscal balance as a basis for fairness between generations. It is abundantly clear from the chaos of the past few weeks that the policy has failed. Given that the policy goals are unlikely to be criticised, the question addressed here is which parts of the policy need replacing or augmenting.

scholarly journals Public Debt, Economic Growth and Fiscal Balance: Alternative Measures of Sustainability in the Indian Context

2018 ◽  
Vol 21 (3) ◽  
pp. 780-799
Author(s):  
Joydeb Sasmal ◽  
Ritwik Sasmal
Keyword(s):  
Economic Growth ◽  
Fiscal Policy ◽  
Public Debt ◽  
Indian Context ◽  
Increase With Increase ◽  
Fiscal Balance ◽  
Short Run ◽  
The Government ◽  
Net National Product ◽  
The Impact

This article has examined the impact of public expenditure on economic growth and viability of fiscal policy when the deficit in budget is financed by public borrowing. A number of alternative criteria have been used as indicators of solvency in fiscal balance. The study is based on the theoretical framework and supported by the results of time series analysis in the Indian context. It is found that the share of revenue expenditure (RE) of the government has significantly increased over time and many of the components of RE are non-developmental in nature. The article argues that if growth suffers, it will put adverse impact on fiscal balance. The ratio of gross fiscal deficit (GFD) to net national product (NNP) and growth of NNP are co-integrated, and the ratio is found to increase with increase in NNP indicating deterioration in fiscal balance. The increase in total expenditure of the government has caused rise of the ratio of revenue deficit to total spending. Interest payment on public debt has led to the increase of the ratio of GFD to income. These results are indicators of non-viability of fiscal policy in India at least in the short run.

Theorizing About Post-Keynesian Economics in Australasa

2013 ◽  
pp. 411-435
Author(s):  
Paul Dalziel ◽  
J. W. Nevile
Keyword(s):  
Higher Education ◽  
Economic Growth ◽  
Monetary Policy ◽  
World War Ii ◽  
Fiscal Policy ◽  
Aggregate Demand ◽  
World War ◽  
Keynesian Economics ◽  
Low Levels ◽  
Monetary And Fiscal Policy

There was much in common in the development of post-Keynesian economics in Australia and New Zealand, but there were also many differences. Both countries shared a common heritage in higher education. In the first twenty-five years after World War II, both countries adopted broadly Keynesian policies and experienced very low levels of unemployment. Increasingly over these years more theorizing about macroeconomic policy had what now would be called a post-Keynesian content, but this label was not used till after the event. In both countries, apart from one important factor, the experience of actual monetary policy and theorizing about it were similar. Keynesian ideas were more rapidly adopted in Australia than in many other countries. Not surprisingly for a couple of decades after 1936, analysis of policy and its application was Keynesian rather than post-Keynesian, with fiscal policy playing the major role. The conduct of both monetary and fiscal policy depends on the theory of inflation. This chapter examines post-Keynesian economics in Australasia, focusing on aggregate demand, economic growth, and income distribution policy.

The Golf Boom in South Korea: Serving Hegemonic Interests

1992 ◽  
Vol 9 (4) ◽  
pp. 372-384 ◽  
Author(s):  
Minseok An ◽  
George H. Sage
Keyword(s):  
Economic Growth ◽  
South Korea ◽  
Political Stability ◽  
Golf Courses ◽  
Farm Land ◽  
The Past ◽  
Social Incentives ◽  
The Social ◽  
Industrial Productivity ◽  
The Government

In the past decade, to help maintain political stability and promote economic growth, South Korea has committed substantial resources to commercialized sports, including golf. A major source of support for building golf courses has come from government leaders and economic and social incentives as well. In the past 4 years the government has given permission to build 135 new golf courses. The official government discourse about the new golf courses is that they are being built in the interest of “sport for all.” But the golf courses overwhelmingly require membership, which is extremely expensive. Despite the enormous power and resources of the dominant groups in Korea, there are elements of opposition. The golf boom has been severely criticized because it removes large amounts of land from agricultural and industrial productivity, contaminates farm land, and pollutes water. It also represents the worst aspects of the social imbalance of wealth.

scholarly journals Enhancing rural livelihoods in Tanza-nia : A small-holder farmers’ perspective

2017 ◽  
Vol 5 (2) ◽  
pp. 68 ◽  
Author(s):  
Abel Kinyondo ◽  
Joseph Magashi
Keyword(s):  
Economic Growth ◽  
Poverty Reduction ◽  
Agricultural Sector ◽  
Rural Livelihoods ◽  
Sustainable Livelihood ◽  
Extension Services ◽  
The Past ◽  
Small Holder Farmers ◽  
The Government ◽  
Small Holder

Poverty reduction has been a difficult milestone for Tanzania to achieve despite recording remarkable economic growth over the past decade. This is because the attained growth is not inclusive, in that sectors contributing to this growth employ fewer people. Given the fact that agriculture continues to employ the majority of people in Tanzania, efforts to improve livelihoods should necessarily be geared towards transforming the sector. It is in this context that using a sample of 3,000 farmers from 13 regions of Tanzania; this Tanzania, this study set out to examine challenges facing farmers and their respective solutions following the sustainable livelihood framework. Findings show that improving farmers’ livelihoods would entail concerted efforts by the government to avail to farmers, quality and affordable seeds, fertilizer, agricultural infrastructures, subsidies, extension services, markets, information alert, affordable loans, and areas for pastures. This implies that the government needs to allocate enough funds to the agricultural sector if farmers’ needs are to be met. We note, however, that government’s allocation to the sector has alarmingly generally been exhibiting a declining trend for the past four years. It is against this background that we strongly recommend that the government rethinks its position and prioritize the agricultural sector in its budget.

scholarly journals Economic Growth, Policies and Influencing Factors: The Case of Albania

2016 ◽  
Vol 4 (1) ◽  
pp. 107
Author(s):  
Eleni Vangjeli ◽  
Anila Mancka
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
Interest Rates ◽  
Empirical Analysis ◽  
Influencing Factors ◽  
Fiscal Policies ◽  
The Government ◽  
High Level ◽  
The Empirical Analysis

Monetary and fiscal policies are two policies that the government could use to keep a high level of growth, with a low inflancion. Fiscal policy has its initial impact on the stock market, while monetary policy in market assets. But, given that the goods and active markets are closely interrelated, both policies, monetary as well as fiscal have impact on the economy, increasing the level of product through the reduction of interest rates. In our paper we will show how functioning monetary and fiscal policies. But also in our paper we will analyze the different factors which have affected the economic growth of the country. The focus of our study is the graphical and empirical analysis of economic growth, policies and influencing factors. For the empirical analysis we have used data on the economic growth in Albania for 1996– 2014.

Market Challenges, Risks, and Policy

2018 ◽  
pp. 163-188
Author(s):  
Adam Christopher Wood
Keyword(s):  
Economic Policy ◽  
Fiscal Policy ◽  
Financial Stability ◽  
International Perspective ◽  
Policy Decisions ◽  
Wall Street ◽  
Current State ◽  
The Government ◽  
Monetary And Fiscal Policy

This chapter first examines what caused the need to regain global stability after the financial crisis. The author provides a brief refresher of how the market crash in 2008, and subsequent Great Recession, was initially fueled while honing in on the allocation of “the fuel” coupled with the repeals of bicentennial-long legislation and the associated dangers of these economic policy changes. Notations from Nobel laureates and interagency economists from the IMF and World Bank aid in identifying the consequences of these policy decisions while simultaneously illustrating the enhanced risk within a variety of markets. Next, the author discusses the current state and relative stability of the financial markets, economic policy, and the risks associated therein. Lastly, this chapter provides recommendations for the future of monetary and fiscal policy, globalization, and what the government (and Wall Street) must consider should they seek to attain long-term financial stability from an international perspective. Monetary and fiscal policy decisions implemented and in-progress by the Federal Reserve are fastidiously examined throughout this chapter.

scholarly journals Public Spending and Poverty Reduction in Indonesia: The Effects of Economic Growth and Public Spending on Poverty Reduction in Indonesia 2009-2018

2019 ◽  
Vol 4 (2) ◽  
pp. 49-56
Author(s):  
Hendrawan Toni Taruno
Keyword(s):  
Economic Growth ◽  
Rural Areas ◽  
Poverty Reduction ◽  
Social Protection ◽  
Public Spending ◽  
Poverty Rate ◽  
Single Digit ◽  
The Past ◽  
The Government ◽  
Urban And Rural Areas

Poverty is a complex and multidimensional issue. Over the past four decades, the number of poor in Indonesia has experienced a significant decline, from 40.10 percent in 1976 to 9.82 percent in March 2018. Nevertheless, the disparity of poverty rates between provinces is still quite high. The poverty rate in several provinces in Java Island, for example, is already at the single-digit level, while in Eastern Indonesia, is still more than double-digit level. As it is known, public spending and economic growth are two crucial instruments on poverty reduction programs. This study aims to investigate the role of economic growth and public spending, particularly education, health, and social protection on poverty reduction in Indonesia. By using panel data from 31 provinces during 2009-2018 period, this study used two regression models to analyze the effects of these two variables on poverty reduction, both in urban and rural areas. This study shows that public spending on health and education sectors has a slightly different effect on poverty reduction between urban and rural areas. Convincingly, spending allocation on health and education has had a significant effect to reduce poverty rate in rural areas, while the decline of poverty rates in urban is likely more influenced by spending on health. This study also shows that over the past ten years, economic growth and social protection spending did not have a significant effect on reducing poverty rates. Therefore, in order to reduce poverty more effectively, it would be better for the government to focus its poverty reduction programs on investment in health and education sectors.

scholarly journals The Relationship Between External Debt, Economic Growth, Unemployment and National Expenditure in Viet Nam

2018 ◽  
Vol 1 (2) ◽  
pp. p129
Author(s):  
Anh Tru Nguyen
Keyword(s):  
Economic Growth ◽  
Monetary Policy ◽  
Fiscal Policy ◽  
External Debt ◽  
Viet Nam ◽  
Credit Growth ◽  
Short Run ◽  
The Government ◽  
The Relationship ◽  
Macroeconomic Stability

The article examines the relationship between external debt, economic growth, unemployment and national expenditure in Viet Nam between 1987 and 2016. We found that the influence of a variable on other variables varies in the short run. We found that there are directional relationships between GDP and external debt and GDP and national expenditure. We also found that there are directional relationships between unemployment and external debt, GDP, and national expenditure. Results addressed directional relationships between national expenditure and external debt and GDP. There are two co-integrations among variables. In order to sustain macroeconomic stability in Viet Nam, fiscal policy should be re-examined to meet large development needs and monetary policy should be tightened to reduce credit growth. Specifically, external debt should be effectively managed by the government because an increase in external debt leads to a decrease in GDP and a growth of unemployment. Moreover, GDP should be facilitated to reduce unemployment in the economy. Lastly, unemployment needs to be controlled because it generates a boom of national expenditure and vice versa.

scholarly journals Analysis of the Impact of Fiscal Policy on Economic Growth in South Africa: VECM Approach

2018 ◽  
Vol 10 (2) ◽  
pp. 231
Author(s):  
Tshembhani Mackson HLONGWANE ◽  
Itumeleng Pleasure MONGALE ◽  
Lavisa TALA
Keyword(s):  
Economic Growth ◽  
South Africa ◽  
Fiscal Policy ◽  
Negative Impact ◽  
National Development ◽  
Real Gdp ◽  
Long Run ◽  
Fixed Capital Formation ◽  
The Government ◽  
The Impact

Fiscal policy ensures macroeconomic stability as a precondition for growth at the macro level. This study investigates the impact of fiscal policy on economic growth of South Africa from 1960 to 2014 through a Cointegrated Vector Autoregression approach. It seeks to contribute to the existing literature as well as in designing effective fiscal policy programmes which can propel economic performance. Theresults of the long run estimates revealed that government tax revenue has a positive and significant long run influence on economic growth, whereas the government gross fixed capital formation and budget deficit have a negative impact on real GDP. For that reason, the study recommends that some expansionary fiscal policy measures should be strengthened since they play a very important role in the economy so as to meet the government target of the National Development Plan Vision for 2030.

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