Automatic Stabilizers and Fiscal Policy When an economy is in a recession, automatic stabilizers may by design result in higherbudget deficits. This aspect of fiscal policy is a tool ofKeynesian economicsthat uses government spending and taxes to supportaggregate demandin the economy during economic d...
Learn what automatic stabilizers are and their benefits. Understand how automatic stabilizers work and discover some examples of automatic...
the policy proposals of both the monetarists and the Keynesians can be simplistic, ineffective and even counterproductive. The adoption of a few simple rules of monetary behavior designed to serve asautomatic stabilizersis shown easily by concrete examples to invite aggravated fluctuations...
The role of taxes as automatic destabilizers in New Keynesian economics, Journal of Public Economics 87 (2003) 1123--1136.Kleven, Henrik Jacobsen & Kreiner, Claus Thustrup, 2003. " The role of taxes as automatic destabilizers in New Keynesian economics ," Journal of Public Economics , ...