Please enable JavaScript.
Coggle requires JavaScript to display documents.
Fiscal Policy - Coggle Diagram
Fiscal Policy
Limitations
Crowding-out effect
Monetary COE, Govt borrow frm banks, high interest rates, higher COB, lose I (counter effect)
Physical COE, Land and Labour shortages, increase COP
Fiscal Sustainability
Requires some sort of sustainability in terms of money, have to take from reserves
-
-
-
-
-
-
Tools of Fiscal
Government Spending
-
Transfer Payments (welfare, CDC)
-
Taxes
Direct Taxes (Income, Corporations, Wealth Taxes)
Indirect Taxes (Custom, Excise, Govt Expenditure Taxes)
-