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Automatic Fiscal Stabilizers

Narcis Mitu ()

Finante - provocarile viitorului (Finance - Challenges of the Future), 2013, vol. 1, issue 15, 118-122

Abstract: Policies or institutions (built into an economic system) that automatically tend to dampen economic cycle fluctuations in income, employment, etc., without direct government intervention. For example, in boom times, progressive income tax automatically reduces money supply as incomes and spendings rise. Similarly, in recessionary times, payment of unemployment benefits injects more money in the system and stimulates demand. Also called automatic stabilizers or built-in stabilizers.

Keywords: public policy; budget; tax; fiscal policy (search for similar items in EconPapers)
JEL-codes: A10 H21 H62 (search for similar items in EconPapers)
Date: 2013
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