Is fiscal policy contracyclical
in India: An empirical analysis.
(III.7.339) He also advocated what would now be called contracyclical
budgeting, arguing that the surplus tax revenue in good years should not be spent, but should be kept in reserve to equalise the state's revenue over good and bad years (III.7.339).
As the government is expected to spend more on infrastructure as a contracyclical
measure to battle the recessionary trends in economy, we expect our growth plans to remain on course." (ANI)
Certainly there remains a tension between relating CARs more closely to underlying risks in individual banks, and in trying for macroeconomic purposes to encourage contracyclical
variations in bank lending in aggregate.
For example, performance measures should consider the strength of the industry within the economy: (1) whether the industry is in a growth, stable, or declining phase, (2) whether the industry moves in the same direction as the general eco nomy (cyclical) or whether it is contracyclical
, (3) whether industry competition is regional, national or international, and (4) whether industry success is based on price, quality, image, distribution, or some other factor (Kaplan and Atkinson, 1989).
Keywords: fiscal policy, monetary policy, inflation target, procyclical policy, contracyclical
Once age effects are also controlled for, the movements in women's hours and weeks of work is contracyclical
though its magnitude is very small.(18)