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Fiscal Policy

  • Sibabrata Das
  • Alex Mourmouras
  • Peter Rangazas
Chapter
Part of the Springer Texts in Business and Economics book series (STBE)

Abstract

This chapter highlights the important role played by the government in jump starting and sustaining economic growth. The government provides the country’s infrastructure or public capital—laws, roads, education, public health, and utilities—that secure property rights and raise the productivity of private capital. Growth in public capital keeps the marginal return to private capital from falling dramatically during industrialization, helping to explain G1. The need for government to lay the foundation for growth helps explain the vast differences in experiences of developing countries after WWII, summarized in G6. Growth Miracles and Growth Disasters are largely driven by especially good and especially bad government policy.

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Copyright information

© Springer International Publishing AG, part of Springer Nature 2018

Authors and Affiliations

  • Sibabrata Das
    • 1
  • Alex Mourmouras
    • 2
  • Peter Rangazas
    • 3
  1. 1.Strategy, Policy & Review DepartmentInternational Monetary FundWashington, DCUSA
  2. 2.International Monetary FundWashington, DCUSA
  3. 3.Department of EconomicsIndiana University-Purdue UniversityIndianapolisUSA

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