The Role for Counter-Cyclical Fiscal Policy in Singapore
Electronic Access:
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Summary:
Singapore's policymakers have often used fiscal policy as a counter-cyclical tool. Empirical results based on a structural autoregression framework suggest that fiscal policy can be used for demand management, although the impact may be somewhat short lived. The short-lived impact could reflect a number of factors, including the absence of credit-constrained economic agents, a high propensity to save among households, monetary focus on price stability, and leakages due to economic openness. Notwithstanding, fiscal policy should still play a key stabilizing role in the current downturn given the downside risks to growth and the vast fiscal space.
Series:
Working Paper No. 2009/008
Subject:
Econometric analysis Expenditure Fiscal policy Fiscal stimulus Revenue administration Structural vector autoregression
English
Publication Date:
January 1, 2009
ISBN/ISSN:
9781451871555/1018-5941
Stock No:
WPIEA2009008
Pages:
18
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