The document discusses several limitations and challenges of fiscal policy as a tool for economic stabilization. It identifies 13 issues that can hamper the effectiveness of fiscal policy: policy lags due to recognition, administrative, and operational delays; difficulties with forecasting economic conditions; challenges determining the appropriate size and timing of fiscal measures; the selective nature of fiscal policy; potential inadequacy or self-offsetting effects of fiscal actions; unintended impacts on income redistribution; issues related to maintaining employment incentives; problems of growing public debt over time; potential adverse psychological reactions; additional difficulties implementing fiscal policy in underdeveloped economies; and administrative challenges in democratic systems with longer legislative and approval processes.
ECONOMIC FOUNDATIONS OF BUSINESS AND MANAGEMENT "Activist fiscal policy in US"Alessandro Rinaldi
Activist Fiscal Policy.
During and after the “Great Recession” that began in December 2007 (according to the Business Cycle Dating Committee at the National Bureau of Economic Research), the U.S. federal government enacted several rounds of activist fiscal policy.
I prepared this slide on my research paper 'fiscal deficit and inflation ' on the current economic situation of India. In this data has been collected from economic survey 2011-12 and several other books. This slide has full data how the the central govt. and central bank uses their, fiscal policy and monetary policy respectively Hope, it will provide a good help for students who want to know about these concepts of economics.
gaurav tripathi(undergrad econ)>
The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
Monetary policy is a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the overall supply of money that is available to the nation's banks, its consumers, and its businesses.
ECONOMIC FOUNDATIONS OF BUSINESS AND MANAGEMENT "Activist fiscal policy in US"Alessandro Rinaldi
Activist Fiscal Policy.
During and after the “Great Recession” that began in December 2007 (according to the Business Cycle Dating Committee at the National Bureau of Economic Research), the U.S. federal government enacted several rounds of activist fiscal policy.
I prepared this slide on my research paper 'fiscal deficit and inflation ' on the current economic situation of India. In this data has been collected from economic survey 2011-12 and several other books. This slide has full data how the the central govt. and central bank uses their, fiscal policy and monetary policy respectively Hope, it will provide a good help for students who want to know about these concepts of economics.
gaurav tripathi(undergrad econ)>
The non-partisan Committee for a Responsible Federal Budget (CRFB) has compiled a brief background on the scope of our nation's fiscal challenges and the drivers of our debt and deficits, while outlining some of the types of solutions available to address the problems. This Powerpoint is meant to offer an objective, easily-accessible view of our country's fiscal situation as an educational tool meant to help foster open and honest discussion about these issues.
Monetary policy is a set of tools that a nation's central bank has available to promote sustainable economic growth by controlling the overall supply of money that is available to the nation's banks, its consumers, and its businesses.
key Points Chapter 11· The English economist John Maynard Keynes.docxcroysierkathey
key Points Chapter 11
· The English economist John Maynard Keynes developed a model that provided an explanation for the high and prolonged rate of unemployment of the Great Depression.
· In the Keynesian model, equilibrium occurs when the spending on consumption, investment, government purchases, and net exports is equal to total output. Firms will produce only the quantity of goods and services they believe consumers, investors, governments, and foreigners plan to buy. If this spending level is less than full-employment output, firms will not alter their production levels and the less than full-employment rate of output will persist. Keynes believed this was the situation during the Great Depression.
· According to the Keynesian view, fluctuations in total spending (aggregate demand) are the major source of economic instability. Keynesians believe that market economies have a tendency to fluctuate between economic booms driven by excessive demand and recessions resulting from insufficient demand. The multiplier concept magnifies these fluctuations.
· When an economy is in a recession, Keynesians do not believe that reductions in either resource prices or interest rates will promote recovery. As a result, market economies are likely to experience recessions that are both severe and lengthy.
· The federal budget is the primary tool of fiscal policy. The Keynesian model highlights the use of fiscal policy as a tool with which to maintain demand at a level consistent with full employment and price stability.
· Rather than balancing the budget annually, Keynesians believe that fiscal policy should reflect business cycle conditions. During a recession, fiscal policy should become more expansionary (a larger deficit should be run). During an inflationary boom, fiscal policy should become more restrictive (shift toward a budget surplus).
· Changes in fiscal policy must be timed properly if they are going to exert a stabilizing influence on an economy. The ability of policy-makers to time fiscal policy changes in a countercyclical manner is reduced by
· (1)
the inability of the political process to act rapidly,
· (2)
the time lag between when a policy change is instituted and when it affects the economy, and
· (3)
the inability to forecast accurately the future direction of the economy.
· Automatic stabilizers help promote stability because they are able to add demand stimulus during a recession and restraint during an economic boom without legislative action.
· Although an abrupt increase in saving may exert an adverse impact on the economy in the short run, saving provides the financing for investment that powers long-term growth. Moreover, a healthy economy is dependent on households saving regularly and avoiding excessive debt.
Key Points chapter 12
· The crowding-out model indicates that expansionary fiscal policy will lead to higher real interest rates and less private spending, particularly for investment. In an open economy, the higher in ...
The four dimensions of public financial managementicgfmconference
In two relatively short articles, Michael Parry first proposes a definition of the modified cash basis of accounting and then describes the four dimensions of public financial management. We welcome this approach of relatively short articles addressing key issues in governmental financial management and would encourage other authors to follow Michael’s example in future issues.
ECONOMIC COMMENTARY Number 2014-09May 8, 2014Why Do Econom.docxtidwellveronique
ECONOMIC COMMENTARY Number 2014-09May 8, 2014
Why Do Economists Still Disagree over
Government Spending Multipliers?
Daniel Carroll
Public debate about the effects of government spending heated up after record-large stimulus packages were enacted
to address the fallout of the fi nancial crisis. Almost as noticeable as the discord was the absence of consensus among
prominent economists on the issue. While it seems a simple problem to estimate the effect of government spending on
output—the size of the government multiplier—it is anything but.
ISSN 0428-1276
Over the past several years, attention has focused on the
dangers of medium- and long-run imbalances in government
budgets. This was less the case at the beginning of the
recent fi nancial crisis, when the question was if and how the
government should try to stimulate the economy. But before
long, the debate surfaced. Some argued that the government
should prop up falling private demand with increased
spending. Others claimed that increased government
spending would have little to no stimulative effect in the
short run and that it might even be contractionary.
Economists could offer little in the way of clarifi cation, with
venerated scholars falling on both sides of the debate. This
failure of economists to agree on the issue leads some in
the public to suppose that economists are incompetent, or
perhaps worse, politically motivated.
The truth is that economists have struggled to answer
the question, “What effect does an increase in government
spending today have on output in the future?” In economics,
this effect is called the government spending multiplier,
and unfortunately for those of us who would like certainty
on the matter, there are major challenges associated with
measuring it. An appreciation for these challenges should
explain why competent scholars can hold widely different
opinions about the effect of government spending on output.
Measurement Challenges
Problems with measuring the government spending
multiplier begin at the outset—with the way the question
itself is phrased. At fi rst, it seems like a natural question,
but in fact it is far too general.
For starters, it is presumptuous to speak of “the”
government spending multiplier as if there is only one.
Because a change in government spending is likely to
infl uence output over multiple periods in the future, separate
multipliers could be created for each period. To calculate
the appropriate multiplier, should we look at how much
output changes one quarter in the future? One year? Five
years? There is no universally accepted answer. Some studies
report a collection of multipliers over a specifi c time period
(for example, a multiplier for each quarter up to three years).
Others average these numbers or report a range.
Taking a stand on timing is not suffi cient however. One
must also consider what type of government spending
is increased. Surely an increase in milita.
Read| The latest issue of The Challenger is here! We are thrilled to announce that our school paper has qualified for the NATIONAL SCHOOLS PRESS CONFERENCE (NSPC) 2024. Thank you for your unwavering support and trust. Dive into the stories that made us stand out!
Acetabularia Information For Class 9 .docxvaibhavrinwa19
Acetabularia acetabulum is a single-celled green alga that in its vegetative state is morphologically differentiated into a basal rhizoid and an axially elongated stalk, which bears whorls of branching hairs. The single diploid nucleus resides in the rhizoid.
2024.06.01 Introducing a competency framework for languag learning materials ...Sandy Millin
http://sandymillin.wordpress.com/iateflwebinar2024
Published classroom materials form the basis of syllabuses, drive teacher professional development, and have a potentially huge influence on learners, teachers and education systems. All teachers also create their own materials, whether a few sentences on a blackboard, a highly-structured fully-realised online course, or anything in between. Despite this, the knowledge and skills needed to create effective language learning materials are rarely part of teacher training, and are mostly learnt by trial and error.
Knowledge and skills frameworks, generally called competency frameworks, for ELT teachers, trainers and managers have existed for a few years now. However, until I created one for my MA dissertation, there wasn’t one drawing together what we need to know and do to be able to effectively produce language learning materials.
This webinar will introduce you to my framework, highlighting the key competencies I identified from my research. It will also show how anybody involved in language teaching (any language, not just English!), teacher training, managing schools or developing language learning materials can benefit from using the framework.
Francesca Gottschalk - How can education support child empowerment.pptxEduSkills OECD
Francesca Gottschalk from the OECD’s Centre for Educational Research and Innovation presents at the Ask an Expert Webinar: How can education support child empowerment?
June 3, 2024 Anti-Semitism Letter Sent to MIT President Kornbluth and MIT Cor...Levi Shapiro
Letter from the Congress of the United States regarding Anti-Semitism sent June 3rd to MIT President Sally Kornbluth, MIT Corp Chair, Mark Gorenberg
Dear Dr. Kornbluth and Mr. Gorenberg,
The US House of Representatives is deeply concerned by ongoing and pervasive acts of antisemitic
harassment and intimidation at the Massachusetts Institute of Technology (MIT). Failing to act decisively to ensure a safe learning environment for all students would be a grave dereliction of your responsibilities as President of MIT and Chair of the MIT Corporation.
This Congress will not stand idly by and allow an environment hostile to Jewish students to persist. The House believes that your institution is in violation of Title VI of the Civil Rights Act, and the inability or
unwillingness to rectify this violation through action requires accountability.
Postsecondary education is a unique opportunity for students to learn and have their ideas and beliefs challenged. However, universities receiving hundreds of millions of federal funds annually have denied
students that opportunity and have been hijacked to become venues for the promotion of terrorism, antisemitic harassment and intimidation, unlawful encampments, and in some cases, assaults and riots.
The House of Representatives will not countenance the use of federal funds to indoctrinate students into hateful, antisemitic, anti-American supporters of terrorism. Investigations into campus antisemitism by the Committee on Education and the Workforce and the Committee on Ways and Means have been expanded into a Congress-wide probe across all relevant jurisdictions to address this national crisis. The undersigned Committees will conduct oversight into the use of federal funds at MIT and its learning environment under authorities granted to each Committee.
• The Committee on Education and the Workforce has been investigating your institution since December 7, 2023. The Committee has broad jurisdiction over postsecondary education, including its compliance with Title VI of the Civil Rights Act, campus safety concerns over disruptions to the learning environment, and the awarding of federal student aid under the Higher Education Act.
• The Committee on Oversight and Accountability is investigating the sources of funding and other support flowing to groups espousing pro-Hamas propaganda and engaged in antisemitic harassment and intimidation of students. The Committee on Oversight and Accountability is the principal oversight committee of the US House of Representatives and has broad authority to investigate “any matter” at “any time” under House Rule X.
• The Committee on Ways and Means has been investigating several universities since November 15, 2023, when the Committee held a hearing entitled From Ivory Towers to Dark Corners: Investigating the Nexus Between Antisemitism, Tax-Exempt Universities, and Terror Financing. The Committee followed the hearing with letters to those institutions on January 10, 202
Biological screening of herbal drugs: Introduction and Need for
Phyto-Pharmacological Screening, New Strategies for evaluating
Natural Products, In vitro evaluation techniques for Antioxidants, Antimicrobial and Anticancer drugs. In vivo evaluation techniques
for Anti-inflammatory, Antiulcer, Anticancer, Wound healing, Antidiabetic, Hepatoprotective, Cardio protective, Diuretics and
Antifertility, Toxicity studies as per OECD guidelines
Synthetic Fiber Construction in lab .pptxPavel ( NSTU)
Synthetic fiber production is a fascinating and complex field that blends chemistry, engineering, and environmental science. By understanding these aspects, students can gain a comprehensive view of synthetic fiber production, its impact on society and the environment, and the potential for future innovations. Synthetic fibers play a crucial role in modern society, impacting various aspects of daily life, industry, and the environment. ynthetic fibers are integral to modern life, offering a range of benefits from cost-effectiveness and versatility to innovative applications and performance characteristics. While they pose environmental challenges, ongoing research and development aim to create more sustainable and eco-friendly alternatives. Understanding the importance of synthetic fibers helps in appreciating their role in the economy, industry, and daily life, while also emphasizing the need for sustainable practices and innovation.
How to Make a Field invisible in Odoo 17Celine George
It is possible to hide or invisible some fields in odoo. Commonly using “invisible” attribute in the field definition to invisible the fields. This slide will show how to make a field invisible in odoo 17.
Instructions for Submissions thorugh G- Classroom.pptxJheel Barad
This presentation provides a briefing on how to upload submissions and documents in Google Classroom. It was prepared as part of an orientation for new Sainik School in-service teacher trainees. As a training officer, my goal is to ensure that you are comfortable and proficient with this essential tool for managing assignments and fostering student engagement.
1. They are:
1. Policy Lags:
During the recent times, there is not much argument about the
desirability or otherwise of a discretionary fiscal policy. The burning
question in this context is related with the timing of the fiscal
measures. Unless the variations in taxes and public expenditure are
neatly timed, the desired counter-cyclical effects can not be realized.
There is generally some interval between the time when a particular
action is needed and the time when a fiscal measure has its impact
felt. The duration of this interval determines the extent to which a
specific fiscal measure can be effective. This time interval comprises
of three types of lags-recognition lag, administrative lag and
operational lag.
ADVERTISEMENTS:
(а) Recognition Lag:
This is the interval between the time when action is needed and when
it is recognized that action is needed. This lag may exist when a
change in the economy and a report concerning the change do not
coincide. Such a lag has a duration of 3 months. It can be reduced if
the forecasting is satisfactory.
(b) Administrative Lag:
This is the interval between the time when need of an action is
recognized and the time when the action is actually taken. This is
perhaps the most difficult lag to deal with. Even when the need of
action has been recognized, the sanction from legislature and
executive must take some time and that may involve about 1 to 15
months of time.
ADVERTISEMENTS:
In order to reduce such a lag and to minimize the legislative and
executive red-taps, it is important to keep a shelf of public works in
readiness. The recognition and administrative lags together
determine the inside lag of the fiscal policy and its length, according
to Willes, is 4 to 18 months.
2. (c) Operational Lag:
The time interval between when action is taken and when it has its
impact on income and employment is known as the operational or
the outside lag. Albert Ando and E.C. Brown have pointed out that
the change in personal income taxes produce significant changes in
disposable money income and consumption within a month or two;
changes in the corporate tax structure produce changes in corporate
spending in about 3 or 4 months. Willes was of the view that the
outside lag of fiscal policy has a short duration of 1 to 3 months only.
J.G. Ranlett, however, considers that these estimates need
modification.
On the basis of U.S. income tax data of 1960’s, he emphasized that
the valuation in income tax rates affected changes on consumption
spending with a lag of about 3 to 9 months. Even this estimate of
outside lag of fiscal policy is much lower than that of the monetary
policy.
2. Forecasting:
Another most serious limitation of fiscal policy is the practical
difficulty of observing the coming events of economic instability.
Unless they are correctly observed the amount of revenue to be
raised, the amount of expenditure to be incurred or the nature and
extent of budget balance to be framed cannot be suitably planned. In
fact, success of fiscal measures depends on the accurate predictions
of various economic activities. In its absence, it proves to be a little
bit erratic.
3. Correct Size and Nature of Fiscal Policy:
The most important necessity on which the success of fiscal policy
will depend is the ability of public authority to frame the correct size
and nature of fiscal policy on the one hand and to foresee the correct
timing of its application on the other. It is, however, too much to
expect that the government would be able to correctly determine the
size, nature of composition and appropriate execution-time of fiscal
policy.
4. Fiscal Selectivity:
ADVERTISEMENTS:
3. When monetary policy is general in nature and impersonal in impact,
the fiscal policy, in contrast, is selective. The former permits the
market mechanism to operate smoothly.The latter, on the contrary,
encroaches directly upon the market mechanism and gives rise to an
allocation of resources which may be construed as good or bad
depending upon one’s value judgements. A particular set of fiscal
measures may have an excessively harsh impact upon certain sectors,
while leaving others almost unaffected.
5. Inadequacy of Fiscal Measures:
In anti-depression fiscal policy, the expansion of public spending and
reduction on taxes are always important elements. The question
arises naturally, whether a specific variation in public spending or
taxes will bear the desired results or not. In case the injections or
withdrawals from the circular flow are more or less than what are
required, the system will fail to move in the desired direction. This
results in exaggeration of instability in the economy.
6. Adverse Effect on Redistribution of Income:
ADVERTISEMENTS:
It is felt that fiscal policy measures redistribute income, the actual
effect will be uncertain. If income is redistributed in favour of the
low-income classes whose marginal propensity to consume is high,
the effect will be increase in total demand. But the fiscal action will
be contractionary if larger part of the additional income goes to
people having higher marginal propensity to save.
7. Self-offsetting Effect:
The compensatory fiscal policies of the government may discourage
private investment, since the private entrepreneurs have to face a
competition from public enterprises in securing labour, raw
materials and finances. Moreover, increased involvement of the
government in economic activity at the onset of recession
strengthens the pessimistic expectations of the private
entrepreneurs. The expansion of public spending may be associated
with a curtailment of private spending. Consequently, the fiscal
measures may be self-offsetting.
4. 8. Reduction in National Income:
ADVERTISEMENTS:
Balanced budget multiplier as a fiscal weapon can be gainfully
applied during depression is conditioned by the fact of marginal
propensity to spend of the recipients of public expenditure being
larger than or, at least, equal to that of the taxpayers. In case it
becomes smaller than the taxpayers, the fiscal programmes under
balanced budget will bring about reduction in the national income.
9. Solution for Unemployment:
The purpose of fiscal policy will be defeated if the policy can not
maintain a rising supply level of work effort. The money national
income will rise with increase in productive efficiency and increased
supply of work effort. But if the tax measures are stringent and too
high, they will certainly affect the incentive to work. This is an
important limitation of fiscal policy.
10. Adverse Effect on debt Management:
ADVERTISEMENTS:
The use of fiscal instruments during unemployment and depression
is often associated with the subsequent problem of debt
management. Because deficit budgeting is the normal fiscal cure,
public debt is made for financing it. And if the process of recovery
from depression is long, the creation of budget deficit year after year
will create a huge problem of debt repayment and debt management.
11. Adverse Psychological Reaction:
Large deficit programmes financed by borrowings bring about
adverse psychological reactions.Rumours of government bankruptcy
discourage investors and often flight of capital takes place.
12. Hardships in U.D.Cs:
The creation of additional income through compensatory fiscal
measures is not easily possible in underdeveloped countries as in
advanced economies.This is mainly because astagnatingagricultural
sector dominates the largest part of their economy where marginal
5. propensity to consume is so high that most of the additional income
is consumed and the marketable surplus is the least.
13. Administrative Problems in Democratic Countries:
In a democracy fiscal policy measures must be a time-consuming
process. Legislative actions, administrative tasks and the executive
process are often delayed and the original estimates of revenue
earnings and government expenditures often become irrelevant. The
operational lag relating to fiscal measures results in a considerable
erosion of effect and the gap between expected achievement and the
real attainment often becomes vast.