TITLE:
Discussions on the Growth Efficiency of Expansionary Fiscal Policy via Monetary Policy in Shrinking Periods: Wide Range of Country Analysis
AUTHORS:
Tuğba Demirtaş
KEYWORDS:
Expansionary Fiscal Policy, Monetary Policy, Growth, Shrinking Period
JOURNAL NAME:
Modern Economy,
Vol.14 No.10,
October
11,
2023
ABSTRACT: There are many different opinions in the literature that expansionary
fiscal policies can be effective on growth during periods of economic
contraction. In this study, different approaches to expansionary fiscal
policies are examined in terms of the
effects and tradeoffs between fiscal expenditures-growth, expansionary
tax policies-growth and inflation-growth. The short-term and long-term effects
of fiscal policies on growth in 110 countries for the period of 2007-2016 were
analyzed, taking into account the expansionary policies of the 2007-2009
period, the effect of the main growth dynamics and the interaction of
monetary-fiscal policies. The results show the holistic view and effectiveness.