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The Growth and Stabilization Properties of Fiscal Policy in Malaysia

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  • Sohrab Rafiq

Abstract

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.

Suggested Citation

  • Sohrab Rafiq, 2013. "The Growth and Stabilization Properties of Fiscal Policy in Malaysia," IMF Working Papers 13/149, International Monetary Fund.
  • Handle: RePEc:imf:imfwpa:13/149
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    Cited by:

    1. Sohrab Rafiq, 2016. "When China Sneezes Does ASEAN Catch a Cold?," IMF Working Papers 16/214, International Monetary Fund.

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