It’s Never Different: Fiscal Policy Shocks and Inflation

Cevik, Serhan

doi:10.5089/9798400242878.001

Cited by 8 publications

(2 citation statements)

References 43 publications

Supporting

Mentioning

Contrasting

Order By: Relevance

“…Although fiscal stimulus can help overcome economic problems, excessive or uncontrolled use of fiscal stimulus can lead to inflation. A sudden increase in aggregate demand can cause an increase in the prices of goods and services (Cevik, 2023).…”

Section: Theoretical Frameworkmentioning

confidence: 99%

Discourse Analysis Fiscal Stimulus Policy During the Covid-19 Pandemic: Comparatives Study of Indonesia and Japan

Zein,

Wurarah,

Fatkhuri

et al. 2023

J. of Law and Sust. Develop.

View full text Add to dashboard Cite

Objective: This study attempts to explain the fiscal stimulus policy of Indonesia and Japan in the economic recovery due to the COVID-19 pandemic from a neo-Marxist perspective. Theoretical Framework: Fiscal Stimulus Policy in the Health and Non-Health Sectors in Indonesia and Japan. Method: The research was conducted with a qualitative approach. This study used secondary data, including the literature of previous research results, state budget documents, policy documents, official circulars of relevant institutions, news media articles, public opinion polls, and reports published by the IMF, OECD, and ECDC. Researchers analyzed secondary data from the IMF and OECD because they are trusted and updated organizations related to data development. Results and Conclusion: The results showed that the proportion of fiscal stimulus policy between the two countries is different from the total economic recovery of GDP increase during 2020-2021 in Indonesia increased by 5.76% and Japan by 3.6%. Identifying the composition of fiscal stimulus policy shows that Indonesia's intervention level is categorized as Mixed towards Compulsory Instruments while Japan is at the Mixed Instruments level. The intervention level reflects the implicit Neo-Marxist perspective that tends to be higher in Indonesia's Keynesian fiscal stimulus than in Japan. Research Implications: This study provides an overview of the relationship between theory and concrete reality in depth to provide a contribution value to the development of government intervention theory related to the terminology of the degree/level of intervention in economic recovery when the country is at the site of a global crisis. Originality/value: The level of intervention of the Indonesian and Japanese governments reflects the explanation and answer from the Neo-Marxist perspective to the building elements of the Theory of Keynesian understanding. The answer to the description is mainly related to the aspects of the State's role, which are not clear and thorough, and the Keynesian Understanding synthesizes the Neo-Marxist Perspective.

show abstract

Section: Theoretical Frameworkmentioning

confidence: 99%

Discourse Analysis Fiscal Stimulus Policy During the Covid-19 Pandemic: Comparatives Study of Indonesia and Japan

Zein,

Wurarah,

Fatkhuri

et al. 2023

J. of Law and Sust. Develop.

View full text Add to dashboard Cite

show abstract

“…Jorgensen and Ravn (2022) apply structural VAR models for the United States and fiscal spending shocks based on real-time forecast errors to find evidence that prices do not increase in response to a positive government spending shock. Cevik and Miryugin (2023) use fiscal shocks identified in a variety of ways, including changes in the cyclically-adjusted primary balances and forecast errors, to examine the link between fiscal expansions and realized inflation using annual data for a large set of countries. 4 They find that both headline and core measures of inflation increase in response to expansionary fiscal policies.…”

Section: Introductionmentioning

confidence: 99%