FISCAL POLICY: TOOLS AND CHALLENGES FOR ECONOMIC STABILIZATION
Keywords:
fiscal policy, government spending, taxation, economic stabilization, budget deficit, public debt, Keynesian economics, fiscal multiplier, debt-to-GDP ratio, sustainable growthAbstract
Fiscal policy, encompassing government spending and taxation, is a critical tool for influencing macroeconomic conditions such as aggregate demand, employment, and inflation. This article explores the mechanisms of fiscal policy, its application during economic crises, and the challenges of ensuring long-term fiscal sustainability. Drawing on recent global experiences, including the COVID-19 pandemic response, we analyze the effectiveness of fiscal interventions and the risks associated with rising public debt.
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