Many researchers have explored the implications of Lucas’ misperception model. Arguably, the most important implication of this model is that the slope of the aggregate supply curve depends on the variability of nominal shocks. This paper examines this insight from Lucas’ model using annual...

The nexus between government revenue and government expenditure always wins the attention of policy makers and think tanks while they work four making fiscal policies for an economy. This paper is an empirical investigation on the unidirectional causality between government expenditures and the...

Monetarists maintain that changes in the price level are attributable to the level of the money supply. Hence, price stability has been the rationale for the money supply rule derived from the Quantity Theory of Money. Consequently, to curb inflation, the general price level index is the lever...

This paper evaluates the main effects of the implementation of tax flat system in Romanian economy. If accompanying measures are not going to be enforced, the introduction of the flat rate of 16% in Romania will lead to unsustainable budgetary deficits and inflationist pressures. The flat tax...

The fiscal policies in the contemporaneous economic systems heavy influence both the real and nominal sectors. These effects could be located at the primary distribution of the social resources as will as at level their redistribution one. The aims of this paper are: (1) to review the literature...

EU member countries are currently exposed to negative implications of the economic and financial crisis. In connection with this problem arises the question of an anti-cyclic role of an economic policy or more precisely the (regulatory) role of the government in the economy that seems to be the...

The IMF had a coercitive and disciplining role in different eras of Argentina`s economic history. This role became more evident when facing governements that were not so fond of implementing the reforms suggested by the international financial institution but that at the same time strongly...

As it also happened in many Latin American countries during the 60s and 70s, inflation became one of the main economic problems in the Brazilian economy. The acceleration of prices and hyperinflation coexisted not only with periods of economic expansion (1956-1979), but also with huge...

The fiscal policies in the contemporaneous economic systems heavy influence both the real and nominal sectors. These effects could be located at the primary distribution of the social resources as will as at level their redistribution one. The aims of this paper are: (1) to review the literature...

The welfare state was created after 1950 with counterproductive mechanisms and this caused high inflation and high unemployment and stagnating growth by 1970, called stagflation. Since 1970 governments redressed the welfare state but did not succeed in finding workable mechanisms. They rather...