Fiscal Stabilization Policy and Fiscal Institutions
In this paper we analyse counter-cyclical fiscal policy within the context of a microfounded analysis of business-cycle stabilization. We show that tax and spending instruments can have a useful counter-cyclical role, even after allowing for the distortionary nature of the instruments and the need for debt sustainability. A critical barrier to the use of fiscal instruments may be political economy concerns, and we survey recent suggestions involving alternative fiscal policy institutions. Copyright 2005, Oxford University Press.
Year of publication: |
2005
|
---|---|
Authors: | Leith, Campbell ; Wren-Lewis, Simon |
Published in: |
Oxford Review of Economic Policy. - Oxford University Press. - Vol. 21.2005, 4, p. 584-597
|
Publisher: |
Oxford University Press |
Saved in:
Saved in favorites
Similar items by person
-
ELECTORAL UNCERTAINTY, THE DEFICIT BIAS ANDTHE ELECTORAL CYCLE IN A NEW KEYNESIANECONOMY
Leith, Campbell, (2009)
-
Interest rate feedback rules in an open economy with forward looking inflation
Leith, Campbell B., (1997)
-
Interactions between monetary and fiscal policy under flexible exchange rates
Leith, Campbell B., (2008)
- More ...