Operation and Effectiveness of Fiscal Policy
Fiscal policy represents government intervention in the economy through changes in government expenditures and taxes. The presumption is fiduciary conduct by the government. For example, expenditures on infrastructure or national defense are believed to be conducted in the most efficient and reasonable way. Government contracts are required to have multiple bids and the bids are examined for specifications and costs. This does not mean government employees do not make mistakes or that nothing fails in practice. Rather, the assumption means that there is no reason for deliberate inefficiency or sabotage.
Nevertheless, ineptness, lack of information, or even human greed and self-indulgence ...
Get Fiscal Policy within the IS-LM Framework now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
