THE INFLUENCE OF THE FISCAL POLICY AND THE AUTOMATIC STABILIZERS ON THE ECONOMY

Irina-Stefana Cibotariu () and Mirela Matei ()
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Irina-Stefana Cibotariu: Stefan cel Mare University of Suceava, Romania
Mirela Matei: Petroleum-Gas University of Ploiesti, Romania
Authors registered in the RePEc Author Service: Mirela Panait ()

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2010, vol. 10, issue 1(11), 170-175

Abstract: The current economical and financial crisis has a powerful effect on the public finances, as in the reduction of the economical activity lead to the reduction of the budgetary income, increase of deficits and of public debt. Furthermore, the support given to the banks having problems in the main industrialized counties, materialized in pumping liquidities into the system but also the taking over of uncertain assets will be finally reflected also on the public debt. The anti-cyclic policies consist of an assembly of macro-economical measurements that want either the increase of the aggregated demand or the encouraging of the global offer. In this paper, a synthesis was attempted of the conceptual approaches, in terms of defining the automated stabilizers, a synthesis including both the classic/traditional approaches and the current ones. Currently, the mix of anti-cyclic policies, of which these automatic fiscal stabilizers are part of, moved from the use with predilection of these towards fiscal simulation programs of a large scale. Secondary effects of these policies and of the fiscal stabilizers will me materialized in a never seen increase of the public debt, and in difficulties of covering the retirement expenditure given the global aging of the population in the developed countries. In order to reduce the effects of the current crisis, the state calls for fiscal stimulation measurements, those being a combination of public expenses and tax reduction for companies that want to recover the economical activity, the increase of the work places’ occupation degree and the caring of the business environment.

Keywords: Automatic Stabilizers, Anti-ciclic Policies, Fiscal stabilizers, Stabilization Policies (search for similar items in EconPapers)
Date: 2010
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Persistent link: https://EconPapers.repec.org/RePEc:scm:ausvfe:v:10:y:2010:i:1(11):p:170-175

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