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The Growth and Stabilization Properties of Fiscal Policy in Malaysia

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  • Sohrab Rafiq
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    Abstract

    This paper examines the size of the fiscal multiplier values generated in Malaysia. The results show that a government spending shock leads to broad positive economic effects. Although, the effectiveness of fiscal policy alters across macroeconomic states. The estimates show that since the Asian financial crisis the medium- and long-run effect of fiscal policy spending has declined. Some of this is down to greater credit availability and less investment spending.

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    Bibliographic Info

    Paper provided by International Monetary Fund in its series IMF Working Papers with number 13/149.

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    Length: 48
    Date of creation: 19 Jun 2013
    Date of revision:
    Handle: RePEc:imf:imfwpa:13/149

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    Keywords: Fiscal policy; Malaysia; Government expenditures; External shocks; Economic models; Economic Growth; Stabilization; Multipliers; Time-variation; government spending; fiscal multipliers; fiscal stimulus; government spending shocks; fiscal expansion; fiscal spending; fiscal shocks; discretionary fiscal policy; fiscal policies; public debt; fiscal policy actions; cyclical fiscal policy; aggregate demand; expansionary fiscal; expansionary fiscal policy; public spending; government spending multipliers; fiscal consolidation; fiscal stance; fiscal policy on consumption; public expenditures; budget deficit; fiscal policy response; fiscal adjustment; fiscal stimuli; increase in government expenditure; fiscal affairs; fiscal constraints; discretionary fiscal stimulus; taxation; fiscal adjustments; fiscal affairs department;

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