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Automatic Stailization - Argument for the Reduction of Discretionary Measures in Public Policies

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  • Ailinca Alina Georgeta

    ("Victor Slãvescu" Financial and Monetary Research Center)

Abstract

Fiscal and monetary policy can play an important role in stabilizing the economies of the world, especially during the crisis, but this implies, in particular, discretionism, irreversibility and time discrepancies of implementation. Generally, with reference to the automatic tax stabilizer, the concept of automatic stabilizer is increasingly being rumored amid increased mistrust in discretionary macroeconomic policy to combat or at least mitigate the effects of the global economic and financial crisis. Therefore, this article aims to increase the understanding of the advantages of non-discretionism in public policies, providing a series of arguments in favor of increasing non-discretionaryism in monetary and/or fiscal-budgetary policies.

Suggested Citation

  • Ailinca Alina Georgeta, 2019. "Automatic Stailization - Argument for the Reduction of Discretionary Measures in Public Policies," Social-Economic Debates, Association for Entreprenorial Spirit Promotion, vol. 8(1), pages 1-12, April.
    • Handle: RePEc:sdb:social:v:8:y:2019:i:1:p:1-12
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    More about this item

    Keywords

    Macroeconomic policies; automatic stabilizers; discretionary stabilization mechanisms;
    All these keywords.

    JEL classification:

    • D78 - Microeconomics - - Analysis of Collective Decision-Making - - - Positive Analysis of Policy Formulation and Implementation
    • 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
    • H30 - Public Economics - - Fiscal Policies and Behavior of Economic Agents - - - General

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