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The Role of Fiscal Policy Rules in the Postcrisis Period: Easing or Tightening?

Author

Listed:
  • G. A. Petrosyan

    (Russian-Armenian University)

  • I. B. Petrosyan

    (Russian-Armenian University)

  • E. G. Petrosyan

    (Russian-Armenian University)

Abstract

— The article considers the ways to adapt fiscal rules in the postpandemic period in the Republic of Armenia, taking into account the new challenges associated with the geopolitical situation. The effectiveness of existing fiscal rules during the crisis is assessed, taking into account their impact on economic recovery, fiscal sustainability, and overall economic well-being. Through a comprehensive analysis of different configurations of fiscal rules, the authors attempt to determine the balance between flexibility and discipline in fiscal policy in the postcrisis period. The study examines the trade-offs between easing fiscal rules to achieve short-term recovery growth goals and maintaining stricter rules to ensure long-term fiscal stability.

Suggested Citation

  • G. A. Petrosyan & I. B. Petrosyan & E. G. Petrosyan, 2024. "The Role of Fiscal Policy Rules in the Postcrisis Period: Easing or Tightening?," Studies on Russian Economic Development, Springer, vol. 35(2), pages 180-189, April.
    • Handle: RePEc:spr:sorede:v:35:y:2024:i:2:d:10.1134_s1075700724020126
    DOI: 10.1134/S1075700724020126
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