The Growth and Stabilization Properties of Fiscal Policy in Malaysia

June 19, 2013

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.

Subject: Expenditure, Financial crises, Fiscal multipliers, Fiscal policy, Fiscal stimulus, National accounts, Private consumption

Keywords: Asia and Pacific, Central America, economic activity, Economic Growth, financial crisis multiplier, Fiscal multipliers, Fiscal Policy, fiscal policy shock, Fiscal stimulus, Global, government spending, monetary policy, multiplier value, Multipliers, Private consumption, Stabilization, Time-variation, transmission mechanism, value calculation, world financial crisis, WP

Pages:
48
Volume:
2013
DOI:
https://doi.org/10.5089/9781484337912.001
Issue:
149
Series:
Working Paper No. 2013/149
Stock No:
WPIEA2013149
ISBN:
9781484337912
ISSN:
1018-5941

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