The Role for Counter-Cyclical Fiscal Policy in Singapore

January 1, 2009

Preview Citation

Format: Chicago

Leif Lybecker Eskesen. The Role for Counter-Cyclical Fiscal Policy in Singapore, (USA: International Monetary Fund, 2009) accessed November 23, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

Singapore's policymakers have often used fiscal policy as a counter-cyclical tool. Empirical results based on a structural autoregression framework suggest that fiscal policy can be used for demand management, although the impact may be somewhat short lived. The short-lived impact could reflect a number of factors, including the absence of credit-constrained economic agents, a high propensity to save among households, monetary focus on price stability, and leakages due to economic openness. Notwithstanding, fiscal policy should still play a key stabilizing role in the current downturn given the downside risks to growth and the vast fiscal space.

Subject: Econometric analysis, Expenditure, Fiscal policy, Fiscal stimulus, Revenue administration, Structural vector autoregression

Keywords: Adjusted expenditure shock, Discretionary fiscal policy, Expenditure measure, Fiscal policy, Fiscal policy in Singapore, Fiscal stimulus, Global, Stimulus package, Structural vector autoregression, SVAR, Tax credit, WP

Publication Details

Pages:

18
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2009/008
Stock No:

WPIEA2009008
ISBN:

9781451871555
ISSN:

1018-5941

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