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Issues in the Implementation of Fiscal, Income and Monetary Policy in order to Adjust Aggregate Demand

Author

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  • Mascu Simona

    („Ovidius” University of Constanta)

Abstract

The goal of this paper is to discuss the joint analyses of fiscal, income and monetary policy in modifying aggregate spending. The paper is focused on the specific characteristics of aggregate demand depending on phases of economic cycle. Through this paper I also intend to emphasize that the recent crisis involved a shortfall of aggregate demand, falling incomes, budget deficit, monetary difficulties in which it is necessary the implementation of proper macroeconomic policies tools. In order to adjust aggregate demand in reaching the main goals of macroeconomic wealth which are price stability and economic growth, the fiscal, income and monetary policy need to be coordinated in adequate ratios. These measures imply good cost benefit analyses before applying the proper mix of policies

Suggested Citation

  • Mascu Simona, 2010. "Issues in the Implementation of Fiscal, Income and Monetary Policy in order to Adjust Aggregate Demand," Ovidius University Annals, Economic Sciences Series, Ovidius University of Constantza, Faculty of Economic Sciences, vol. 0(2), pages 452-456, October.
    • Handle: RePEc:ovi:oviste:v:10:y:2010:i:2:p:452-456
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    More about this item

    Keywords

    aggregate demand; monetary policy; fiscal policy; income policy;
    All these keywords.

    JEL classification:

    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • E64 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Incomes Policy; Price Policy

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