Automatic Fiscal Stabilizers
Policies or institutions (built into an economic system) that automatically tend to dampen economic cycle fluctuations in income, employment, etc., without direct government intervention. For example, in boom times, progressive income tax automatically reduces money supply as incomes and spendings r...
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| Format: | Article |
| Language: | English |
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Universitaria Publishing House
2013-11-01
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| Series: | Finanţe: Provocările viitorului |
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| Online Access: | http://www.financejournal.ro/fisiere/revista/111427644215_Mitu_en.pdf |
| Summary: | Policies or institutions (built into an economic system) that automatically tend to dampen economic cycle fluctuations in income, employment, etc., without direct government intervention. For example, in boom times, progressive income tax automatically reduces money supply as incomes and spendings rise. Similarly, in recessionary times, payment of unemployment benefits injects more money in the system and stimulates demand. Also called automatic stabilizers or built-in stabilizers. |
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| ISSN: | 1583-3712 1583-3712 |