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Fiscal policy and the optimal gdp under a budget constrain condition

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  • Alin OPREANA

    ()

  • Diana MIHAIU

    (LUCIAN BLAGA UNIVERSITY OF SIBIU)

Abstract

In the current economic environment caused by the crisis, government loans have reached very high levels and have put pressure on the economic growth of all states. Under these circumstances governments are obliged to use a fiscal policy that takes into account the existence of a strong budget constraint and the perspective of a sustainable economic growth, which should further allow the repayment of government debt. Thus, this study analyzes the existing situation in the United States. This paper aims to identify the level of U.S. GDP, which should be achieved in the conditions of a budget constraint, determined by a sovereign debt that has exceeded in 2011 the value of $15,000 billion.

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File URL: http://fse.tibiscus.ro/anale/Lucrari2012/kssue2012_127.pdf
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Bibliographic Info

Article provided by Faculty of Economics, Tibiscus University in Timisoara in its journal Anale. Seria Stiinte Economice. Timisoara.

Volume (Year): XVIII (2012)
Issue (Month): (May)
Pages: 775-782

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Handle: RePEc:tdt:annals:v:xviii:y:2012:p:775-782

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Keywords: Fiscal Policy; Budget Constrain; Optimal GDP; government borrowings;

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  1. Luigi Marattin & Massimiliano Marzo, 2009. "A Note on the (Un)Pleasant Arithmetic of Fiscal Policy: The Case of Italian Public Debt," Economic Notes, Banca Monte dei Paschi di Siena SpA, vol. 38(3), pages 169-183, November.
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