Book contents
- Macroeconomics for Professionals
- Macroeconomics for Professionals
- Copyright page
- Dedication
- Contents
- Acknowledgments
- Glossary of symbols and acronyms
- Preface
- Chapter 1 Introduction, Motivation, and Overview
- Chapter 2 Real Economic Activity
- Chapter 3 Inflation, Relative Prices, and Expectations
- Chapter 4 Monetary Policy and Accounts
- Chapter 5 The Fiscal System
- Chapter 6 Financial Stability
- Chapter 7 The External Accounts
- Index
Chapter 5 - The Fiscal System
Published online by Cambridge University Press: 09 January 2019
- Macroeconomics for Professionals
- Macroeconomics for Professionals
- Copyright page
- Dedication
- Contents
- Acknowledgments
- Glossary of symbols and acronyms
- Preface
- Chapter 1 Introduction, Motivation, and Overview
- Chapter 2 Real Economic Activity
- Chapter 3 Inflation, Relative Prices, and Expectations
- Chapter 4 Monetary Policy and Accounts
- Chapter 5 The Fiscal System
- Chapter 6 Financial Stability
- Chapter 7 The External Accounts
- Index
Summary
Fiscal policy is where political theory and ideology intersect with the everyday practice of governance, and, ultimately, the economics of budget constraints. Legislators have to make practical decisions on how much to spend, how to allocate this spending, which activities and citizens to tax and at what rates. The public debate usually appeals to broad principles – the appropriate role of government in the economy, the dangers of distorting market signals, and the balance between efficiency and equity – with positions reflecting ideological predilections.
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- Information
- Macroeconomics for ProfessionalsA Guide for Analysts and Those Who Need to Understand Them, pp. 147 - 190Publisher: Cambridge University PressPrint publication year: 2019