How Should Fiscal Policy Be Set Over the Business Cycle?
Several generations of economists have analyzed the relationship between fiscal policy and the business cycle. How is fiscal policy actually conducted over the business cycle? From a public policy point of view, the interpretation based on credit m...
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| Format: | Brief |
| Language: | English |
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World Bank, Washington, DC
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2000/11/1643378/fiscal-policy-set-over-business-cycle http://hdl.handle.net/10986/11410 |
| Summary: | Several generations of economists have
analyzed the relationship between fiscal policy and the
business cycle. How is fiscal policy actually conducted over
the business cycle? From a public policy point of view, the
interpretation based on credit market imperfections calls
for ensuring that developing countries retain access to
international credit markets in bad times. At the domestic
level, effective liquidity management and intertemporal
solvency of fiscal accounts have been emphasized for
countries to avoid being cut off from international credit
markets in bad times. |
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