Fiscal policy tries to achieve its objectives by modifying the programmes of public revenues and public expenses elaborated by the policy maker. One of its objectives is to improve the situation of the economic agents, and one way to achieve it is increasing the activity of the firms, employment...

Fiscal policy tries to achieve its objectives by modifying the programmes of public revenues and public expenses elaborated by the policy maker. One of its objectives is to improve the situation of the economic agents, and one way to achieve it is increasing the activity of the firms, employment...

The impact of budget deficits on private investment is an unsettled issue. If budget deficits are to be financed by borrowing, interest rates must rise so that capital markets can reach equilibrium. High interest rates, in turn, result in a decreased investment, hence the crowding-out effect. On...

In August 2009, the Freetown Declaration by the African finance ministers committed their governments to 'implement fiscal stimulus measures' to counter the effects of the international financial crisis. This paper analyses the institutional and economic feasibility of realising this commitment....

In this paper, we try to answer if the empirical evidence on the Greek fiscal policy has been consistent with the government intertemporal budget constraint during two tested periods, 1833 to 2009 and 1960 to 2009. The recent Greek debt crisis provides a unique opportunity to test whether...

In this paper we advocate a way of approaching macroeconomic policy, which stands in contrast to the now discredited 'new consensus in macroeconomics' policy framework. The five pillars of our approach are: the need for budget deficits to support the level of aggregate demand; full consideration...

In the fiscal reforms undertaken throughout the last decade, the dual income tax system, based on a broadened concept of income and progressive tax rates, has been implanted in several countries as an alternative model to traditional tax systems. The dual tax is characterised by combining a...

In the fiscal reforms undertaken throughout the last decade, the dual income tax system, based on a broadened concept of income and progressive tax rates, has been implanted in several countries as an alternative model to traditional tax systems. The dual tax is characterised by combining a...

Traditionally, economists have been concerned over factors that improve economic growth, initially introducing physical capital and later human capital. We will consider a new factor, social capital. Also, we will introduce in this paper the effect of the fiscal policy on economic growth. In...

This article discusses the relationship between fiscal and monetary policies, considering different cases: government budget constraint and the wealth effect, determining the corresponding multipliers. The value of these multipliers will denote the effectiveness of fiscal policy. The article...