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Fiscal shocks and the reaction of automatic stabilizers

Author

Listed:
  • Emilia Mioara CAMPEANU

    (Bucharest Academy of Economic Studies)

  • Elena PADUREAN

    (Centre of Financial and Monetary Research „Victor Slavescu”)

Abstract

Investigation of the fiscal policy effects generates comprehensive dispute given the scientific importance of understanding the mechanisms by which governments interventions operate and interact throughout the economy. In addition, should not be overlooked that the effects of fiscal policies are considered in the literature that results shocks. In this case, temporary shocks caused by business cycles should be corrected by automating stabilizers. This requires proper functioning of the automate stabilizers. It is therefore useful the scientific approach proposed in this paper to analyze the fiscal policy shocks and the mechanism through which the automatic stabilizers react to them.

Suggested Citation

  • Emilia Mioara CAMPEANU & Elena PADUREAN, 2012. "Fiscal shocks and the reaction of automatic stabilizers," Anale. Seria Stiinte Economice. Timisoara, Faculty of Economics, Tibiscus University in Timisoara, vol. 0, pages 189-196, May.
  • Handle: RePEc:tdt:annals:v:xviii:y:2012:p:189-196
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    More about this item

    Keywords

    fiscal policy; shock; automatic stabilizer; business cycle;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H20 - Public Economics - - Taxation, Subsidies, and Revenue - - - General
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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