 The Efficiency of the Fiscal Policy in the EU and Its Role in the Economic Recovery by Attracting FDIsMagdalena Rădulescu ()
Journal of Knowledge Management, Economics and Information Technology, 2011, vol. 1, issue 7, 23 Abstract: The deep global recession has focused attention on the need for countercyclical macroeconomic policies. The scope for monetary policy was hampered by the credit freeze in the financial system, which was constrained by the accumulation of toxic assets awaiting a resolution to restore confidence and efficient intermediation. While a heated debate has emerged on the specifics, the need for fiscal intervention to support demand proved to be larger and of longer duration than initially envisaged. Further, there is a need to consider lags governing the fiscal policy transmission to decide on the speed of fiscal withdrawal without jeopardizing the recovery efforts. The aim of this paper is to establish some important factors for fiscal policy effectiveness and their role in attracting FDIs in the EU countries for sustaining economic recovery here based on literature review and the EU countries’ experience. Even if the tax regime is not the only factor that determines decisions for foreign investments, reducing tax rates in some new Member States has increased the attractiveness of these countries for foreign investors. Keywords: FDIs; fiscal policy stimulus; automatic stabilizers; macroeconomic stability (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spp:jkmeit:1224 Access Statistics for this article More articles in Journal of Knowledge Management, Economics and Information Technology from ScientificPapers.org |
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