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Peut-on recourir à la politique budgétaire ? Est-ce souhaitable ?


  • Robert M. Solow


In recent years, a case has been made against the use of fiscal policy for stabilization purposes. Real business cycle theory, which portrays the economy as being in global intertemporal equilibrium, concludes that fiscal policy is useless, while the Ricardian equivalence hypothesis concludes that it is neutral. Both arguments are however not empirically well founded. Nevertheless, political-economy considerations convincingly suggest that discretionary fiscal stabilization might well be inappropriate. However, automatic fiscal stabilizers are a valuable policy instruments and the trend observed in recent years, at least in the US and UK, of weakening them should be reversed. One may even think of reinforcing the automatic stabilizing effect of the tax system by making some tax rates vary automatically with economic activity.

Suggested Citation

  • Robert M. Solow, 2002. "Peut-on recourir à la politique budgétaire ? Est-ce souhaitable ?," Revue de l'OFCE, Presses de Sciences-Po, vol. 83(4), pages 7-24.
  • Handle: RePEc:cai:reofsp:reof_083_0007

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    References listed on IDEAS

    1. Matthieu Charpe & Peter Flaschel & Christian Proano & Willi Semmler, 2009. "Overconsumption, credit rationing and bailout monetary policy: A Minskyan perspective," European Journal of Economics and Economic Policies: Intervention, Edward Elgar Publishing, vol. 6(2), pages 247-270.
    2. Anthony B. Atkinson & Thomas Piketty & Emmanuel Saez, 2011. "Top Incomes in the Long Run of History," Journal of Economic Literature, American Economic Association, vol. 49(1), pages 3-71, March.
    3. Dew-Becker, Ian & Gordon, Robert J, 2005. "Where did the Productivity Growth Go? Inflation Dynamics and the Distribution of Income," CEPR Discussion Papers 5419, C.E.P.R. Discussion Papers.
    4. Katz, Lawrence F. & Autor, David H., 1999. "Changes in the wage structure and earnings inequality," Handbook of Labor Economics,in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 26, pages 1463-1555 Elsevier.
    5. Buti,Marco & Deroose,Servaas & Gaspar,Vitor & Martins,João Nogueira (ed.), 2010. "The Euro," Cambridge Books, Cambridge University Press, number 9789279098420, March.
    6. Thomas Piketty & Emmanuel Saez, 2013. "Top Incomes and the Great Recession: Recent Evolutions and Policy Implications," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(3), pages 456-478, August.
    7. Cynamon Barry Z. & Fazzari Steven M., 2008. "Household Debt in the Consumer Age: Source of Growth--Risk of Collapse," Capitalism and Society, De Gruyter, vol. 3(2), pages 1-32, October.
    8. Galbraith, James K., 2012. "Inequality and Instability: A Study of the World Economy Just Before the Great Crisis," OUP Catalogue, Oxford University Press, number 9780199855650, June.
    9. Thomas Piketty, 2013. "Le capital au XXIe siècle," Post-Print halshs-00979232, HAL.
    10. Ian Dew-Becker & Robert J. Gordon, 2005. "Where Did Productivity Growth Go? Inflation Dynamics and the Distribution of Income," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 36(2), pages 67-150.
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    Cited by:

    1. Slimani, Slah, 2017. "Chocs budgétaires et dynamique économique en Tunisie sous une approche de type VAR Structurel
      [Budgetary shocks and economic dynamics in Tunisia under a structural VAR approach]
      ," MPRA Paper 81573, University Library of Munich, Germany.

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