After decomposition of real GDP into cyclical fluctuations, we can find the correlation between real GDP gap, monetary indicator and fiscal policy
To determine the nature of the fiscal policy
should be excluded from the actual budget balance, the cyclical component of the budget (which is influenced by the phases of the business cycle), thus causing structural budget balance (or cyclically adjusted).
Traders refrained from buying bonds actively as the course of Japan's fiscal policy
has become murky ahead of Monday's DPJ election to choose its president, who will become Japan's next leader.
Clearly, countries which run surpluses in the good times are better able to respond to an economic downturn, financial crisis, or external shock by using fiscal policy
Similar to many other countries, Taiwan resorted to aggressive fiscal policy
to cope with the impact of the global financial tsunami and bolster its economy.
Despite the numerous studies on the effects of fiscal policy
on the real economy, considerable uncertainty prevails.
Leeper says he uses terms such as "science" and "alchemy" to call attention to the generalization that "monetary policy tends to employ systematic analytics, while fiscal policy
relies on unsystematic speculation.
However, there is not much room for further fiscal policy
action as the consolidated fiscal deficit of the central and state governments in 2009-2010 is already about 11% of the gross domestic product (GDP).
Despite a range of changes in fiscal frameworks across advanced countries since the 1990s, in general, fiscal policy
remains as opaque as ever.
Some of Mr Stuarts responsibilities include: lead author on fiscal policy
matters for South African Budget documents and the Budget speech; and Public Financial Management Advisor for the International Monetary Fund (IMF).
The Ecofin council upheld five categories of macroeconomic recommendations for Cyprus, without discussion, following the publication by the Commission of the country-specific recommendations on macroeconomic and fiscal policy
on February 22.
Summary: Fiscal policy
, together with structural reforms, will have to play an even bigger role than before in inflation control