Talk:Fiscal policy

Untitled
I added the stub category for this article thinking it needs extensive work. I suggest that we set up this article similar to that seen in the article monetary policy. I hope to add my own touch when i get some spare time. Dupz 15:42, 29 September 2005 (UTC)

Can anyone tell me what is include on fiscal policy
what gov. institutions are responsivle for setting tax rates


 * That depends on what country you are refering to and what tax. mydogategodshat

Fiscal policy is government policy to decide spending, taxation and borrow

ehmm... how about the instrument of fiscal policy??? can anyone tell me what are the instrument of fiscal policy?? how about the multiplier concept??

What are the three parts to deciding on a fiscal policy? expenditures, taxes, and something else.
 * Income, out-flow and net savings / deficit. Not all income is taxes, of course. DOR (HK) (talk) 07:39, 7 July 2008 (UTC)

how does fiscal policy and direct policy affecting the investment in malaysia? —Preceding unsigned comment added by James850403 (talk • contribs) 13:32, 25 May 2008 (UTC)

Fiscal surplus
I've added a paragraph on fiscal surpluses. . . not everyone runs a deficit! DOR (HK) (talk) 03:24, 12 June 2008 (UTC)

New deal
The statement the New Deal reasoned deficit spending is inaccurate. The New Deal in fact saw tepid deficit spending, and contained many balanced budgets. Thoughts? I'll change eventually. 69.94.192.147 (talk) 14:02, 7 February 2009 (UTC).


 * I think the fiscal policy is how the goverment uses taxes and/or goverment expenditures to change the level of output, employment, or prices.


 * FDR used an emergency deficit for the New Deal, the Federal budget was balanced until WWII. The emergency budget was paid off at the end of the war. 92.7.20.203 (talk) 09:46, 6 May 2011 (UTC)

Dr. Faia's comment on this article
Dr. Faia has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:

"The article lacks mention to the recent debate on the optimal date exiting from expansionary fiscal policies and the consequences of consolidaiton policies. Following the 2007 crisis large expansionary fiscal packages had been put in place. The question aroused on the optimal timing for policies to return to normal. Angeloni, I., Faia, E. and M. Lo Duca (Exit Strategies. With I. Angeloni and R. Winkler, European Economic Review, 70, 2014, pp. 231–257.) show empirically and theoretically that the optimal time to exit (an expansionary fiscal policy) has to balance the benefits of demand expansions with the medium run costs of risk-taking (in expensionary environments with low interest rates banks leverage excessively and become more fragile)."

We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.

Dr. Faia has published scholarly research which seems to be relevant to this Wikipedia article:


 * Reference : Alessia Campolmi & Ester Faia & Roland Winkler, 2010. "Fiscal Calculus in a New Keynesian Model with Matching Frictions," Kiel Working Papers 1602, Kiel Institute for the World Economy.

ExpertIdeasBot (talk) 18:22, 27 June 2016 (UTC)
 * Anybody can contribute to Wikipedia. BeenAroundAWhile (talk) 00:50, 28 March 2019 (UTC)

Recent additions
1. Wikipedia’s wp:manual of style leads to Apostrophe, which says “For groups of years, most style guides prefer 1960s to 1960's”.

2. Consol in the financial context is spelled just as the Wikipedia link: consol. Take a look at [] to see that “console” has no financial meaning.

3. The sentence “Fiscal policy is perceived to be significant due to functions that it carries out.” has no meaning.

4. In the added section “Fiscal policy and economic growth”, most of the section doesn’t say anything about fiscal policy. The remaining two sentences say “In less economically developed countries the government spending into infrastructure is prevailing, which explains positive impact of growth. When there is a lower fiscal transparency, taxation has a negative impact on growth due underdeveloped tax system s. Here “is prevailing” in the second last sentence is unclear. The last sentence is unclear as to why an underdeveloped tax system would cause a negative impact of taxation on growth. Furthermore, this section cites just a single pdf article with no indication that it has ever been published in a peer-reviewed place, so it’s not a reliable source. Loraof (talk) 22:30, 30 April 2019 (UTC)

Removal of last sentence in the first paragraph/intro
RE SENTENCE/PARAGRAPH : "This implies that fiscal policy is used to stabilize the economy over the course of the business cycle.[2]"

I think this sentence needs to be removed, it's not that it's incorrect information, it's just it can be taken ambiguously regarding the prior content/context.

-Is the sentence meant to be taken full alone?

-Is the sentence regarding the fact that this attritbute of fiscal policy, is opposing to attribtue(s) of monetary policy? OR rather, would the sentence better read

"This implies that fiscal policy AND MONETARY POLICY is used to stabilize the economy over the course of the business cycle.[2]"

-"The business cycle" is not at all referenced prior to this sentence, yet importance and context is indeed needed to be known to the reader, to actually take this sentence in correctly.

-I think the sentence is just too much of a jump in implied reader knowledge, when they may very well be a layman. It can be interrpretted in different ways, and the correct way for this sentence to be ALWAYS be interrpretted correctly may require knowledge of "business cycle" "monetary policy" "fiscal policy" "macroeconomics" etc etc.

The first section should be replaced
Starting off a wiki page on fiscal policy with a section on the debate about the use of fiscal policy as opposed to monetary policy is not a neutral way to introduce people to what fiscal policy is. First a section what it is, what its methods are historically. Then in a later section look over different ways it is used. Then in a section after that you can talk about the historical shifts that happened about using fiscal policy in a keynesian way, to stabilize employment levels and reduce the impact of recessions, to a more monetarist/neoliberal way of relying more on inflation-targeting efforts, aka more on using the central banks base interest rate to influence the rate of inflation. 2003:C7:F712:4F34:D53D:3B3E:473E:E7A4 (talk) 20:18, 13 September 2023 (UTC)