Andersen and Jordan (1968) and Andersen (1971) argued that fiscal actions have a negligible effect on nominal income and can not sustain a stable and balanced economic growth. Also, they argued, along with other researchers who have embraced monetarism ideas from the Federal Reserve Bank of St. Louis, that the budget deficit presents negativeeffects in the economy that limit private investment. In this article, we analyzed the empirical relationship that is established between the tax actions and the long and short term national income in the U.S. economy and the economies of Eurozone.
Keywordsbudget deficit fiscal actions money supply national income
JEL Classification H30
Full Article
References
- Andersen, L.C., 1971. A monetarist view of demand management: the United States experience. Federal Reserve Bank of St. Louis Review, Issue Sep, pp. 3-11
- Andersen, L.C., and Jordan, J.L., 1968. Monetary and Fiscal Actions: A Test of Their Relative Importance in Economic Stabilization. Federal Reserve Bank of St. Louis Review, November, pp.11-23
- Phillips, P.C.B, and Perron, P., 1988., Testing for a Unit Root in Time Series Regression, Biometrika, 75, pp. 335–346
- Quantitative Micro Software, 2007. EViews 6 User’s Guide. Irvine CA: Quantitative Micro Software, LLC
Article Rights and License
© 2013 The Author. Published by Sprint Investify. ISSN 2359-7712. This article is licensed under a Creative Commons Attribution 4.0 International License.
