ISLAMABAD -- Pakistan's economic growth will be negatively impacted in the short run due to tighter monetary and fiscal policies
as a result of the International Monetary Fund's bailout package, a leading economic research firm said in a report on Wednesday.
ISLAMABAD -- The Monetary and Fiscal Policies
Coordination Board on Monday was presented with a plan by the government to stiffen loose fiscal policies
that are injuring economic stabilization efforts.
Perotti (2002) reported positive effects of fiscal policies
on the price level and interest rate.
Several studies have explained the significance of fiscal policies
in shaping pattern of economic growth via two types of public spending i.e.
Pro-cyclical fiscal policies
increase growth rates in the business cycle upswings and lower them even more to very negative levels in recessions.
This report discusses fiscal trends in policies aimed at reducing fiscal vulnerabilities and boosting medium-term growth, recent fiscal developments and the fiscal outlook in advanced economies, emerging markets, and low-income developing countries; recent trends in government debt and analysis of changes in fiscal balances, revenue, and spending; potential fiscal risks; and growth from the fiscal policies
. It also describes how digitalization can help governments improve implementation of current policy and widen the range of policy options, and opportunities and risks for fiscal policy, including improvements in policy implementation, the design of future policy, and how digitalization can create opportunities for fraud and increase government vulnerabilities.
must, therefore, be embedded in caution than exuberance.
This paper addresses three questions for the design of intergovernmental macroeconomic fiscal policies
. First, are such policies necessary?
A quick glance at fiscal policies
today should further convince us of the importance of this discussion:
This has brought the number of developing countries that have pursued countercyclical fiscal policies
over the last 15 years to 35 percent from just 19 percent in the period 1960-1999.
England would set its fiscal policies
(and other non-monetary and non-fiscal policies such as structural reforms) independently and without Scottish input, and vice versa.