Date of publication: 2017-07-09 06:26
LEWIS, WILFRED 6967 Federal Fiscal Policy in the Postwar Recessions. National Committee on Government Finance, Studies in Government Finance. Washington: Brookings Institution.
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International trade and global economy has brought significant competition in the market. There are many suppliers available to provide a long range of products and product substitutes are easily available. Those customers who prefer to buy less expensive product can easily get the products of their choice. The globalisation and international trade may have impacted the market at macro level but the small market is still safe to some extent. However at macro level, globalisation has strongly affected the GDP, which has put pressure on government monetary and fiscal policies to respond to those forces.
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None of these three financial accounts used in the United States distinguishes between capital and current transactions. However, many other governments use capital budgets which do make this distinction.
Before the depression, attention in economic thinking about fiscal policy focused on its consequences for the distribution of the total output among uses, rather than on its consequences for the level of output in the short run. The main consequences of fiscal policy were considered to be its effects on (a) the division of output between consumption and investment and (b) the division of output between public and private use. Standards of good fiscal policy were largely derived from the desired objectives for these two divisions of the national output. (There was, of course, a vast literature on aspects of public finance other than “fiscal policy” which was concerned with other consequences.)
It has lead to increase competition in the market. Countries are getting benefits from high competition as it leads to low price product to capture market.
. CONGRESS, JOINT COMMITTEE ON THE ECONOMIC REPORT 6997 Economic Report of the President: Hearings Before the Joint Committee on the Economic Report. Washington: Government Printing Office.
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