[go: up one dir, main page]

  EconPapers    
Economics at your fingertips  
 

The impact of fiscal policy on the business cycle

Ashley Dunstan, David Hargreaves and Ozer Karagedikli

Reserve Bank of New Zealand Bulletin, 2007, vol. 70, No 1

Abstract: This article sets out theoretical and empirical evidence on the impact of fiscal policy on the business cycle. Our analysis suggests that fiscal policy has a significant influence on cyclical conditions in New Zealand. Simple measures of the stance of fiscal policy, such as the Treasury’s measure of fiscal impulse, are useful, but the details of fiscal initiatives also need to be analysed to determine macroeconomic impact. For example, tax changes can have very different effects: tax cuts designed to spur savings could be mildly contractionary, while company tax cuts will tend to be expansionary. The significance of fiscal changes for monetary policy also depends partly on other factors driving the business cycle.

Date: 2007
References: Add references at CitEc
Citations: View citations in EconPapers (9)

Downloads: (external link)
http://www.rbnz.govt.nz/-/media/ReserveBank/Files/ ... eaveskaragedikli.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:nzb:nzbbul:march2007:2

Access Statistics for this article

More articles in Reserve Bank of New Zealand Bulletin from Reserve Bank of New Zealand Contact information at EDIRC.
Bibliographic data for series maintained by Reserve Bank of New Zealand Knowledge Centre ().

 
Page updated 2024-07-06
Handle: RePEc:nzb:nzbbul:march2007:2