Policy Papers

Fiscal Policy for the Crisis

December 29, 2008

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Fiscal Policy for the Crisis, (USA: International Monetary Fund, 0) accessed November 21, 2024

Summary

The current crisis calls for two main sets of policy measures. First, measures to repair the financial system. Second, measures to increase demand and restore confidence. While some of these measures overlap, the focus of this note is on the second set of policies, and more specifically, given the limited room for monetary policy, on fiscal policy.

Subject: Corporate taxes, Financial crisis, Financial systems, Fiscal policy, Fiscal sustainability, Government expenditures, Tax reductions

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