Home Part 1 THE IMPACT OF MONETARY AND FISCAL POLICIES ON PUBLIC FINANCIAL MANAGEMENT

 

THE IMPACT OF MONETARY AND FISCAL POLICIES ON PUBLIC FINANCIAL MANAGEMENT

 

 

Loredana Ciurlău

„Constantin Brâncuşi” University from Târgu-Jiu, Faculty of Economics and Bussines Administration, Victoria street no. 24, Tg-Jiu, Gorj, Romania This e-mail address is being protected from spambots. You need JavaScript enabled to view it

 

 

Abstract

Fiscal policy is the main component of financial policy. Being a component of economic policy, taxation must lead to economic objectives. Maintaining equilibria macroeconomic cannot be blamed solely in charge of monetary policy, fiscal policy and that the revenue must have a role in support and to bear the load efforts to stabilise. Large deficits are dangerous for current account, because they are associated with a greater risk of producing an adjustment steep in the exchange rate and high volatility of exchange rate has major implications on the stability and macroeconomic monetary, in general. This means that countries should his election budgets so as to cope with growing demand from the private sector and to take necessary safeguard measures against potential crises, whereas the extent fiscal deficit contributes directly to the magnitude current account deficit.

Keywords: financial policy, monetary policy, fiscal policy, the budgetary constraint, fiscal policy

JEL Clasification: E31, G21


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