Debt stabilisation and dynamic interaction between monetary and fiscal policy: In medio stat virtus

Evaluation of fiscal policy with text mining under "dual carbon" target in China

“…Prescott P. And Paulson Gjerde K (2023) argues that fiscal authorities can effectively address recessions or facilitate economic recovery by reducing consumption and corporate income taxes while increasing public welfare spending [ 17 ].On the other hand, Ji J (2023) presents an opposing perspective, asserting that the ability of fiscal policy to counteract economic fluctuations has diminished, and its effectiveness in mitigating uncertainty in economic performance has waned [ 18 ]. Furthermore, if fiscal authorities excessively prioritize the policy objectives of debt stabilization and output stabilization, it may lead to persistent fluctuations in macroeconomic variables and policy instruments [ 19 ]. At the microcosmic level, Li, S. et al (2023) undertake an extensive examination of the ramifications of fiscal policy on the environment [ 20 ].They contend that governmental expenditures exacerbate CO 2 emissions, while tax revenues exhibit a diminishing effect.…”