THE ANALYSYS OF ANTI-CRISIS FISCAL MEASURES AND THEIR IMPLICATIONS

Elena Toma

The Annals of the "Stefan cel Mare" University of Suceava. Fascicle of The Faculty of Economics and Public Administration, 2009, vol. 9, issue Special, 212-220

Abstract: The purpose of this writing is, in fact, the analyze of the fiscal policy’s effectiveness in order to combat the negative phenomena which characterizes the periods of economical crisis: the fall of the actual production, unemployment and inflation. We are trying to make a fine analysis of the concepts and the phenomena which give the characteristics of the fiscal anti-crisis policy’s effectiveness. We estimate the effectiveness of the fiscal measures only in comparison to other financial policies (monetary policy and budget policy) and by making an analyze of the effects produced by taking fiscal policy decisions in a normative analysis. We reached a final conclusion upon the fiscal policy by examining the theoretical and the practical research so far. So, on the one hand, the fiscal policy in order to achieve its goal must be combined with the other macroeconomic policies and on the other hand, the fiscal policy used to reduce the massive fiscal pressures has low results in what concerns the stimulation of investments and aggregate supply. An active budgetary policy which includes public investment spending can correct the macroeconomic imbalances (both on the market of goods and services and on the market of labor) on short and on long-term only with the condition of respecting certain limits of the budget’s deficit and of the public debt, when it comes to times of recession and economic crisis. More than that, this kind of policy in combination with certain tax incentives which stimulate the investments in the private environment can produce positive effects upon the gross domestic product and employment.

Keywords: fiscal policy; tax; public expenditure; economic crisis; the fiscal multiplier phenomenon (search for similar items in EconPapers)
Date: 2009
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