The impact of economic policy shocks on the outcomes of the fiscal adjustment policies in Tanzania
AbstractThis paper examines the outcomes of the fiscal adjustment policies adopted during the period in which Tanzania experienced economic shocks. The econometric models are used to determine the impact of exogenous and economic policy shocks on gdp growth, public spending and the fiscal balance. The results revealed that policy shocks resulted in structural changes in output growth and public spending instability in Tanzania. Specifically, economic policy shocks led to changes in macroeconomic conditions, which adversely affected the fiscal position after 1986. The results suggest that fiscal adjustment policies should not be undertaken when a number of economic policy changes are envisaged in an economy.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 46151.
Date of creation: Dec 2012
Date of revision: Feb 2013
fiscal adjustment policies; fiscal deficit; public spending; economic policy shock; Tanzania;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
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