4 Fiscal policy in managing the economic recovery

2021 ◽  
pp. 44-71
Author(s):  
Masyita Crystallin ◽  
Abdurohman Crystallin
Keyword(s):  
Fiscal Policy ◽  
Economic Recovery

scholarly journals Fiscal Policy and Economic Recovery: The Case of the 1936 Veterans' Bonus

2016 ◽  
Vol 106 (4) ◽  
pp. 1100-1143 ◽  
Author(s):  
Joshua K. Hausman
Keyword(s):  
Fiscal Policy ◽  
Capita Income ◽  
Household Consumption ◽  
Conventional Wisdom ◽  
Economic Recovery ◽  
Per Capita Income ◽  
Multiple Sources ◽  
Point Estimates ◽  
Per Capita ◽  
Consumption Survey

Conventional wisdom has it that in the 1930s fiscal policy did not work because it was not tried. This paper shows that fiscal policy was tried in 1936. The veterans' bonus of 1936 paid 2 percent of GDP to 3.2 million veterans; the typical veteran received a payment equal to per capita income. Multiple sources, including a household consumption survey, show that veterans spent the majority of their bonus. Point estimates of the MPC are between 0.6 and 0.75. Spending was concentrated on cars and housing in particular. (JEL E21, E32, E62, N32, N42)

Fiscal Policy Coordination

2019 ◽  
pp. 14-25
Author(s):  
Charlotte Rommerskirchen
Keyword(s):  
Fiscal Policy ◽  
Historical Context ◽  
Policy Coordination ◽  
Economic Recovery ◽  
Stability And Growth Pact ◽  
Growth Pact ◽  
Legal Power ◽  
The Stability ◽  
Key Aspects ◽  
Fiscal Policy Coordination

This chapter sets the scene for this study by providing historical context and introducing the key aspects, processes, and players of fiscal policy coordination. In so doing it charts key developments of pre-crisis fiscal policy coordination, before turning to the creation of the European crisis agreement, the European Economic Recovery Plan (EERP), and finally the reform packages post-crisis. Despite impressions to the contrary, the procedures for fiscal policy coordination are extensive, albeit enforced and reinforced with little political and legal power. Although there is persistent continuity for some ideas and procedures—the Stability and Growth Pact (SGP) and its fear of stability free riding chief among them—new innovations and reforms have made inroads.

Fiscal issues in post-communist economies: a pragmatic and aggressive fiscal rule

1999 ◽  
Vol 8 (1) ◽  
Author(s):  
Bruno Sergio Sergi
Keyword(s):  
European Union ◽  
Economic Policy ◽  
Fiscal Policy ◽  
Transition Economies ◽  
Government Debt ◽  
Economic Recovery ◽  
Economic Strategy ◽  
East Europe ◽  
Fiscal Rule

This paper illustrates why a tough fiscal policy in East Europe may be rethought. Western economic policy theories may be fashionable but sometimes fail when applied to transition economies. It is advanced a new proposal for guiding fiscal policy where top priority is given to the ratio government debt/GDP and not to implement a tough deficit policy. Selected transition economies have low debt, then a more pragmatic economic strategy combined with a feasible and wise budget rule on fiscal policy may build up a scenario of economic recovery and sustainable membership in a perspective enlarged European Union.

Fiscal Policy and Economic Recovery

2009 ◽  
Vol 44 (3) ◽  
pp. 132-135 ◽  
Author(s):  
Christina D Romer
Keyword(s):  
Fiscal Policy ◽  
Economic Recovery

scholarly journals Government Policies for Economic Recovery and Handling COVID -19 Virus in Indonesia

2020 ◽  
Vol 7 (2) ◽  
pp. 140-146
Author(s):  
Desy Tri Anggarini ◽  
Ani Rakhmanita
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
National Economy ◽  
Virus Disease ◽  
System Stability ◽  
Economic Recovery ◽  
Corona Virus ◽  
The World ◽  
Ministry Of Finance ◽  
The Government

WHO establishes coronavirus (coronavirus disease, COVID-19), as the Public Health Anxiety of the World on January 30, 2020. The increase in countries affected by the Covid-19 virus is widespread throughout the world such as America, Spain and Italy making the world economic situation even more get worse. Some institutions predict the weakening of the world economy. The contraction of the global economy is still ongoing, uncertainty in the global financial markets has declined as the sluggish spread of COVID-19. The limitation of economic activity as a step for handling COVID-19 risks reducing global economic growth in 2020. Research on Government Policy for  Economic Recovery and handling  COVID-19 Virus in Indonesia, taking stimulus from fiscal and monetary policies undertaken by the Bank Indonesian , Ministry of Finance and Regulations Government 2020, with descriptive qualitative research methods using secondary data such as literature books, review studies from the internet and policies from the government and related ministries. The results of this study have carried out monetary policy through Bank Indonesia, and fiscal policy through the Ministry of finance and supported by Government Regulation of the Republic of Indonesia Number 23 of 2020 concerning the Implementation of the National Economic Recovery Program in the Context of Supporting State Financial Policies for Handling the Corona Virus Disease 2019 (Covid-19) and / or Facing Threats That Harm National Economy and / or Financial System Stability and Save the National Economy. Keywords: Fiscal Policy, Monetary Policy, Covid -19, Corona Virus

scholarly journals Brazil

2019 ◽  
Vol 19 (242) ◽  
Author(s):  
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Financial Markets ◽  
Public Debt ◽  
Economic Recovery ◽  
Real Gdp

The economic recovery after the 2015-16 recession has disappointed, with real GDP growing by only 1.1 percent in 2017 and 2018. Inflation is close to target, hovering around 4 percent. Monetary policy is accommodative with policy rates at the historical low of 6.5 percent. Fiscal policy was neutral in 2018 while gross public debt reached 88 percent of GDP. Financial markets have rebounded since the 2018 election.

scholarly journals Can Fiscal Policy Stimulus Boost Economic Recovery?

2011 ◽  
Vol 62 (6) ◽  
pp. 1045 ◽  
Author(s):  
Luca Agnello ◽  
Ricardo M. Sousa
Keyword(s):  
Fiscal Policy ◽  
Economic Recovery

scholarly journals Economic Recovery from the Argentine Great Depression: Institutions, Expectations, and the Change of Macroeconomic Regime

1999 ◽  
Vol 59 (3) ◽  
pp. 567-599 ◽  
Author(s):  
Gerardo Della Paolera ◽  
Alan M. Taylor
Keyword(s):  
Monetary Policy ◽  
Fiscal Policy ◽  
Central Bank ◽  
Great Depression ◽  
Gold Standard ◽  
Macroeconomic Policy ◽  
Economic Recovery ◽  
The Core ◽  
The Great Depression ◽  
The Creation

Did macroconomic interventions make any contribution to Argentina's revovery from the Great Depression? Macroeconomic policy deviated from gold-standard orthodoxy after the final suspension of convertibility in 1929. Fiscal policy was conservative. Monetary policy became unorthodox after 1931, when the Caja de conversión began rediscounting to sterilize gold outflows and avoid deflation. This change predated the creation of the central bank in 1935. A wider literature links the interwar depression in the core to flaws in the gold standard, and active monetary policy to escape from defaltion and slump; our work extends this idea to the periphery.

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