Fiscal Responsibility And Economic Efficiency:A Functional Approach
AbstractIn both developed and developing countries, there are basically two main sources of economic instability: exogenous shocks and inappropriate policies. Exogenous shock (terms-of-trade shocks, natural disasters and capital flow reversals) can throw an economy into disequilibrium and therefore require compensatory action. On the other hand, a disequilibrium can be self-induced by poor economic macroeconomic management such as an excessively loose fiscal stance. Therefore, economic crisis are often the result of external shocks and poor management. While the worlds of agriculture are vast, varied and rapidly changing, with the right policies and supportive investments at local, national and global levels, today’s agriculture offers new opportunities to hundreds of millions of rural poor to move out of poverty. Similarly, the construction industry is an essential contributor to the process of development. Roads, dams, irrigation works, schools, houses, hospitals, factories and other construction works are the physical foundations on which development efforts and improved living standards are established. This paper there argued that an efficient and functional fiscal policy can have a direct impact on the poor through the distributional implications of tax policy as well as public spending. However, the genuine reformer is distinguished by courage which is that signal that separates the genuine reformer (undertaking transition) from the weak government (hoping to disguise itself).
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 13018.
Date of creation: 26 Jan 2009
Date of revision:
fiscalpolicy; fiscaldeficit; world; policies; reforms; debt; exchangerate; monetarypolicy; inflation; centralbank; government; poverty; efficiency; revenue; shocks;
Find related papers by JEL classification:
- H70 - Public Economics - - State and Local Government; Intergovernmental Relations - - - General
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
- H50 - Public Economics - - National Government Expenditures and Related Policies - - - General
- H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
- H60 - Public Economics - - National Budget, Deficit, and Debt - - - General
- H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General
- D61 - Microeconomics - - Welfare Economics - - - Allocative Efficiency; Cost-Benefit Analysis
This paper has been announced in the following NEP Reports:
- NEP-ALL-2009-01-31 (All new papers)
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