The Growth and Stabilization Properties of Fiscal Policy in Malaysia

WP/13/149

This paper examines the size of the fiscal multiplier values generated in Malaysia. The results show that a government spending shock leads to broad positive economic effects. Although, the effectiveness of fiscal policy alters across macroeconomic states. The estimates show that since the Asian financial crisis the medium- and long-run effect of fiscal policy spending has declined. Some of this is down to greater credit availability and less investment spending.
Publication date: June 2013
ISBN: 9781484337912
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Fiscal Policy , Economic Growth , Stabilization , Multipliers , Time-variation

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