The Growth and Stabilization Properties of Fiscal Policy in Malaysia

Author/Editor: Sohrab Rafiq
Publication Date: June 19, 2013
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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: 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.
Series: Working Paper No. 13/149
Subject(s): Fiscal policy | Malaysia | Government expenditures | External shocks | Economic models

Publication Date: June 19, 2013
ISBN/ISSN: 9781484337912/1018-5941 Format: Paper
Stock No: WPIEA2013149 Pages: 48
US$18.00 (Academic Rate:
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