A Summary of Theoretical Research Literature of Fiscal Policy & Economic Performance in the West World

Abstract

Abstract: Whether fiscal policy of expansion is desirable for economic growth and in what degree in result is a problem both of great theoretic and practical importance,which has been a focus for dispute of western economicsts since Keynesian view came into being.As multiplier is seen as one of the main quota of fiscal policy,our summary will be concentrated on the financial multiplier literature,especially on the impact of government expenditure increase and tax decrease on multiplier and its purpose being judgment of conditions of fiscal expansion to provide stimulus to economy.Considering that fiscal policy means effectiveness through demand and supply regulation and policy-making,our article will deal with how to explain the role of fiscal policy as a decisive factor respectively from the three analyzing angles of demanding and supplying effectiveness and policy-control in line with the research literature of western scholars.

Key words: fiscal policy, economic effectiveness, summary of literature

KUANG Xiao-Ping, LONG Jun. A Summary of Theoretical Research Literature of Fiscal Policy & Economic Performance in the West World[J]. Journal of Jishou University（Social Sciences）, 2004, 25(4): 76-81.

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