Recessioni, cicli e politica fiscale
Riccardo Fiorito ()
Rivista di Politica Economica, 2012, issue 1, 141-164
Cyclical contractions differ from recession phases that are not only much less frequent but also more volatile. A major implication involves fiscal policy stance which in the Oecd area is dominated by automatical responses. Fiscal automatism explains why government spending is often procyclical while discretionary spending confines to about 1/3 of total spending: this happens because most items reflect obligations (pensions, salaries, debt interests) rather than reversible decisions. Thus, in several countries and in Italy in particular, expanding government spending when it was not necessary made impossible using discretionary spending when it was necessary, i.e. during the largest postwar recession.
Keywords: recessions; business cycle; government spending (search for similar items in EconPapers)
JEL-codes: E32 E62 F44 H62 (search for similar items in EconPapers)
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Persistent link: https://EconPapers.repec.org/RePEc:rpo:ripoec:y:2012:i:1:p:141-164
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