Research ArticleOpen AccessGoogle Scholar indexed
Discussions on the Growth Efficiency of Expansionary Fiscal Policy via Monetary Policy in Shrinking Periods: Wide Range of Country Analysis
Central Bank of the Republic of Türkiye, İstanbul, Türkiye
- 1 Central Bank of the Republic of Türkiye, İstanbul, Türkiye
Modern Economy·Volume 14 (2023)·Pages 1347–1365·Published 26 September 2023·DOI10.4236/me.2023.1410069
Copy link · social · email
Abstract
There are many different opinions in the literature that expansionary fiscal policies can be effective on growth during periods of economic contraction. In this study, different approaches to expansionary fiscal policies are ex amined in terms of the effects and tradeoffs between fiscal expenditures-growth, expansionary tax policies-growth and inflation-growth. The short-term and long-term effects of fiscal policies on growth in 110 countries for the period of 2007-2016 were analyzed, taking into account the expansionary policies of the 2007-2009 period, the effect of the main growth dynamics and the interaction of monetary-fiscal policies. The results show the holistic view and effectiveness.
KeywordsExpansionary Fiscal PolicyMonetary PolicyGrowthShrinking Period
- Baxter, M., & King, R. (1993). Fiscal Policy in General Equilibrium. The American Economic Review, 83, 315-334. https://www.jstor.org/stable/2117521
- Bordo, M. D. (2018). Karl Brunner and Allan Meltzer: From Monetary Policy to Monetary History to Monetary Rules. In T. Moser (Ed.), The Conference “Karl Brunner and Monetarism” Swiss National Bank (pp. 1-34). MIT Press.
- Friedman, M. (1948). A Monetary and Fiscal Framework for Economic Stability by Milton Friedman. American Economic Review, 38, 245-264.
- Friedman, M. (1969). Fiscal and Monetary Policy, from the Collected Works of Milton Friedman. Cemla Boletin Mensual, 15, 382-388.
- Greenwald, B. C., Stiglitz, J. E., Hall, R. E., & Fischer, S. (1988). Examining Alternative Macroeconomic Theories. Brookings Papers on Economic Activity, 1988, 207-270. https://doi.org/10.2307/2534427
- Harrod, R. F., Blume, L. E., & Sargent, T. J. (2015). Harrod 1939. The Economic Journal, 125, 350-377. https://doi.org/10.1111/ecoj.12224
- Kalecki, M. (1946). A Comment on Monetary Policy. The Review of Economics and Statistics, 28, 81-84. https://doi.org/10.2307/1927354
- Kalecki, M. (1955). The Problem of Financing of Economic Development. Indian Economic Review, 2, 1-22.
- Kalecki, M. (1962). Observations on the Theory of Growth. The Economic Journal, 72, 134-153. https://doi.org/10.2307/2228620
- Keynes, J. M. (2010). Genel Teori: İstihdam, Faiz ve Pararnın Genel Teorisi. Kalkedon Yayınevi.
- King, R. G. (1982). Monetary Policy and the Information Content of Prices. Journal of Political Economy, 90, 247-279. https://www.jstor.org/stable/1830292 https://doi.org/10.1086/261055
- Labra, R., & Torrecillas, C. (2018). Estimating Dynamic Panel Data. A Practical Approach to Perform Long Panels. Revista Colombiana de Estadística, 41, 31-52. https://doi.org/10.15446/rce.v41n1.61885
- Lopez, J. G., & Assous, M. (2010). Michal Kalecki. Palgrave Macmillan. https://doi.org/10.1057/9780230293953
- Mill, J. S. (2009). Principles of Political Economy by John Stuart Mill. A Text Book for Colleges. Dover Publications.
- Minsky, H. P. (1972). An Evaluation of Recent Monetary Policy. Nebraska Journal of Economics and Business, 11, 37-56. https://www.jstor.org/stable/40472428