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Fiscal policy transmission mechanisms

Author

Listed:
  • Manoel Carlos Pires
  • Luiz Fernando de Paula

Abstract

The effect of fiscal policy over business cycles has been a source of major controversydespite the growing empirical literature and international experience. This paper proposesan analytical framework that allows us to analyze the transmission channels of fiscalpolicy, updating the most recent findings after the pandemic. In this way, it aims to contributeto a more detailed understanding of some of the main mechanisms by which fiscal policyaffects the economy. JEL Classification: E32; E63; H62.

Suggested Citation

  • Manoel Carlos Pires & Luiz Fernando de Paula, 2024. "Fiscal policy transmission mechanisms," Brazilian Journal of Political Economy, Center of Political Economy, vol. 44(3), pages 467-483.
    • Handle: RePEc:ekm:repojs:v:44:y:2024:i:3:p:467-483:id:2466
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    File URL: https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2466/2397
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    More about this item

    Keywords

    Fiscal policy; fiscal multipliers; interest rates; investments;
    All these keywords.

    JEL classification:

    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E63 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Comparative or Joint Analysis of Fiscal and Monetary Policy; Stabilization; Treasury Policy
    • H62 - Public Economics - - National Budget, Deficit, and Debt - - - Deficit; Surplus

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