The Growth and Stabilization Properties of Fiscal Policy in Malaysia

Sohrab Rafiq

No 2013/149, IMF Working Papers from International Monetary Fund

Abstract: This paper examines the size of the fiscal multiplier values generated in Malaysia. The results show that a government spending shock leads to broad positive economic effects. Although, the effectiveness of fiscal policy alters across macroeconomic states. The estimates show that since the Asian financial crisis the medium- and long-run effect of fiscal policy spending has declined. Some of this is down to greater credit availability and less investment spending.

Keywords: WP; government spending; economic activity; monetary policy; transmission mechanism; Fiscal Policy; Economic Growth; Stabilization; Multipliers; Time-variation; multiplier value; world financial crisis; value calculation; financial crisis multiplier; fiscal policy shock; Fiscal multipliers; Fiscal stimulus; Private consumption; Central America; Global; Asia and Pacific (search for similar items in EconPapers)
Pages: 48
Date: 2013-06-19
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Citations: View citations in EconPapers (2)

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