© 2008 International Monetary Fund February 2008 IMF Country Report No. 08/71 Islamic Republic of Afghanistan: Selected Issues This Selected Issues paper for Islamic Republic of Afghanistan was prepared by a staff team of the International Monetary Fund as background documentation for the periodic consultation with the member country. It is based on the information available at the time it was completed on January 30‚ 2008. The views expressed in this document are those of the staff team and
Premium Bank Public finance Central bank
budget (2009-10) has a fiscal deficit of 6.8 per cent of the GDP (and this does not include the fiscal deficit of the states). The fiscal deficit will be financed mainly by market borrowings of nearly Rs.400‚000 cr. There have been concerns about the high fiscal deficit. The IMF‚ while praising India’s ability to face the global crisis‚ has warned that India’s debt as a percentage of GDP was too high and‚ therefore‚ a sharp rise in the deficit could raise concerns about fiscal sustainability. The RBI
Premium United States public debt Finance Economic growth
FISCAL POLICY Fiscal policy is the use of government revenue collection (taxation) and expenditure (spending) to influence the economy. The two main instruments of fiscal policy are government taxation and changes in the level and composition of taxation and government spending can affect the following variables in the economy: * Aggregate demand and the level of economic activity; * The distribution of income; * The pattern of resource allocation within the government sector and relative
Premium Tax Public finance Economics
Expansionary fiscal policy is a form of fiscal policy in which a decrease in taxes‚ and/or an increase in transfer payments are used to correct the problems of a business-cycle contraction. The goal of expansionary fiscal policy is to close a recessionary gap‚ stimulate the economy‚ and decrease the unemployment rate. I will now evaluate the view that expansionary Fiscal Policy is always beneficial to the UK’s macro-economic performance. One way expansionary fiscal policy can be beneficial to the
Premium Public finance Economics Macroeconomics
Background: Brazil acted fast to inject short-term liquidity into its financial system and medium-term fiscal stimulus to the broad economy following the collapse in confidence in the global financial system in late 2008. The government of President Luiz Inácio Lula has used a combination of personal tax breaks designed to support spending on consumer goods and automobiles‚ business tax breaks on construction materials‚ government spending hikes and support for residential house purchases. However
Premium Public finance Tax
What is Fiscal Policy? One of the features that helps identify the economic direction of a country is fiscal policy. The government utilizes fiscal policy to control the economy through adjustment in spending levels and revenue. According to the theories of John Maynard Keynes‚ the British economist in regard fiscal policy‚ the decreasing or increasing expenditures (spending) and revenue (taxes) levels influences employment‚ inflation and the flow of money into the economic system. Fiscal policy
Premium Public finance Keynesian economics Macroeconomics
Fiscal and Monetary Policy Monetary and fiscal policies are the actions taken by the governments to conduct their macroeconomic policy. They always come together‚ but define different events. Monetary policy defines the actions of central banks aimed at achieving government’s macroeconomic goals‚ namely full employment‚ stability of prices‚ and economic growth. Fiscal policy is the taxation mechanism of how a government earns to the budget and what it spends it on. In the United States‚ the Federal
Premium Monetary policy Macroeconomics
Monetary and Fiscal Policy The Monetary and Fiscal Policies‚ although controlled by two different organizations‚ are the ways that our economy is kept under control. Both policies have their strengths and weaknesses‚ some situations favoring use of both policies‚ but most of the time‚ only one is necessary. The monetary policy is the act of regulating the money supply by the Federal Reserve Board of Governors‚ currently headed by Alan Greenspan. One of the main responsibilities of the Federal Reserve
Free Monetary policy Federal Reserve System Central bank
FISCAL CONTROL BOARDS Origins and Structures of Fiscal Control Boards Understanding the origins and the structure of fiscal control boards is crucial in this discussion‚ since it provides a framework for this mechanism. The Harvard Law Review argues that municipal financial problems and state responses to them are not new phenomena because cities throughout the nation have faced urban fiscal crisis since the 1800’s (Harvard Law Review 1997). Moreover‚ the study defines urban fiscal crisis
Premium City Harvard Law Review Public finance
full employment level of output. When there is increased spending and availability of money are high‚ prices start to rise resulting to an inflationary gap. What fiscal policy (Expansionary or Restrictive) should the government implement to dampen growth and lower inflationary pressures(5 points). ANSWER: RESTRICTIVE FISCAL POLICY (Racing taxes or cutting government spending to dampen GDP(Aggregate Demand) growth and lower inflationary pressures) [pic] C. A Deflationary
Free Monetary policy Inflation Macroeconomics