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Automatic Fiscal Stabilizers

Author

Listed:
  • Narcis Eduard Mitu

    (University of Craiova Faculty of Economics and Business Administration)

Abstract

Policies or institutions (built into an economic system) that automatically tend to dampen economic cycle fluctuations in income, employment, etc., without direct government intervention. For example, in boom times, progressive income tax automatically reduces money supply as incomes and spendings rise. Similarly, in recessionary times, payment of unemployment benefits injects more money in the system and stimulates demand. Also called automatic stabilizers or built-in stabilizers.

Suggested Citation

  • Narcis Eduard Mitu, 2013. "Automatic Fiscal Stabilizers," Finante - provocarile viitorului (Finance - Challenges of the Future), University of Craiova, Faculty of Economics and Business Administration, vol. 1(15), pages 118-122, December.
    • Handle: RePEc:aio:fpvfcf:v:1:y:2013:i:15:p:118-122
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    File URL: http://feaa.ucv.ro/FPV/015-015.pdf
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    Citations

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    Cited by:

    1. Roxana Ispas, 2014. "Budget amendment – cause and effect," Annals of the University of Petrosani, Economics, University of Petrosani, Romania, vol. 14(1), pages 143-150.

    More about this item

    Keywords

    public policy; budget; tax; fiscal policy;
    All these keywords.

    JEL classification:

    • A10 - General Economics and Teaching - - General Economics - - - General
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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