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The Growth and Stabilization Properties of Fiscal Policy in Malaysia

  • Sohrab Rafiq
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    This paper examines the size of the fiscal multiplier values generated in Malaysia. The results show that a government spending shock leads to broad positive economic effects. Although, the effectiveness of fiscal policy alters across macroeconomic states. The estimates show that since the Asian financial crisis the medium- and long-run effect of fiscal policy spending has declined. Some of this is down to greater credit availability and less investment spending.

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    Paper provided by International Monetary Fund in its series IMF Working Papers with number 13/149.

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    Length: 48
    Date of creation: 19 Jun 2013
    Date of revision:
    Handle: RePEc:imf:imfwpa:13/149
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