8. Improper fiscal policy can be destabilizing. Fiscal policy deceleration during a recession can both lengthen the
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8. Improper fiscal policy can be destabilizing. Fiscal policy deceleration during a recession can both lengthen the duratiqn and heighten the severity of an economic slowdown. Similarly, fiscal acceleration is a potential source of inflation. The historical record reveals that fiscal policy has, at times, exerted a counterproductive influence.
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Related Book For
Macroeconomics Private And Public Choice
ISBN: 9780123110701
2nd Edition
Authors: James D Gwartney; Richard Stroup; A H Studenmund
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