Budgetary policy

About: Budgetary policy is a research topic. Over the lifetime, 609 publications have been published within this topic receiving 10796 citations.

Domestic Financial Policies Under Fixed and Under Floating Exchange Rates

Abstract: T HE BEARING of exchange rate systems on the relative effectiveness of monetary policy on the one hand, and of budgetary policy on the other, as techniques for influencing the level of monetary demand for domestic output, is not always kept in mind when such systems are compared. In this paper it is shown that the expansionary effect of a given increase in money supply will always be greater if the country has a floating exchange rate than if it has a fixed rate. By contrast, it is uncertain whether the expansionary effect on the demand for domestic output of a given increase in budgetary expenditure or a given reduction in tax rates will be larger or smaller with a floating than with a fixed rate. In all but extreme cases, the stimulus to monetary demand arising from an increase in money supply will be greater, relative to that arising from an expansionary change in budgetary policy, with a floating than with a fixed rate of exchange.

The Price of Inequality

Abstract: The top 1 percent of Americans control 40 percent of the nation's wealth. And, as Joseph E. Stiglitz explains, while those at the top enjoy the best health care, education, and benefits of wealth, they fail to realize that "their fate is bound up with how the other 99 percent live." Stiglitz draws on his deep understanding of economics to show that growing inequality is not inevitable: moneyed interests compound their wealth by stifling true, dynamic capitalism. They have made America the most unequal advanced industrial country while crippling growth, trampling on the rule of law, and undermining democracy. The result: a divided society that cannot tackle its most pressing problems. With characteristic insight, Stiglitz examines our current state, then teases out its implications for democracy, for monetary and budgetary policy, and for globalization. He closes with a plan for a more just and prosperous future.

Fiscal Policy and Long-Run Growth

Abstract: This paper discusses in a systematic and comprehensive way the existing literature on the relationship between the growth of countries` economies and various public finance instruments, such as tax policy, expenditure policy, and overall budgetary policy, from the perspectives of allocative efficiency, macroeconomic stability, and income distribution. It reviews both the conceptual linkages between each of the instruments and growth and the empirical evidence on such relationships. It broadly concludes that fiscal policy could play a fundamental role in affecting the long-run growth performance of countries.

Patterns of Representation: Dynamics of Public Preferences and Policy

Abstract: Much research shows that politicians represent public preferences in public policy. Although we know that there is representation, we do not understand the nature of the relationship in different policy areas. We do not know whether and to what extent representation varies across domains. Even where we find representation, we do not know what policy makers actually represent. This article explicitly addresses these issues, focusing on a set of nine spending domains in the United States. At the heart of the article is a simple conjecture: representation varies across domains, and the pattern is symmetrical to the pattern of public responsiveness to budgetary policy itself. Analysis of the relationships between opinion and policy over time in the different spending domains supports the conjecture. The patterns fit quite nicely with what we know about the influence of different issues on voting behavior in American national elections. Based on this analysis, then, it appears that politicians’ responsiveness to public preferences reflects the public importance of different policy domains.