Determining the fiscal policy time-frame: the dominance of exogenous circumstances.
Fiscal policy is one of the fundamental tools of political management, and of macro-economic policy. This paper largely confines itself to the second of these functions. It investigates the question of whether there are any circumstances which justify using fiscal policy in a counter-cyclical stabilisation role. The economic issues relevant to this question are assessed, on the basis of the literature and empirical evidence, under three headings: 1. the objectives to which policy may...[Show more]
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