Ahmed Hrifa

Analysing the Effects of Fiscal Policy, Fiscal Adjustment and Macro-Prudential Policy Ahmed Hrifa

Fiscal policy, adjustment of public finances and macro-prudential policy raise many fundamental and complex questions. In this difficult environment, fiscal policy continues to play a key political role- alongside accommodative monetary policy and structural reforms- in building confidence and, where appropriate, sustaining aggregate demand. Use flexible fiscal policy to support growth, while ensuring medium-term debt sustainability. The first chapter of this book examines the interactions between macro-prudential and budgetary policies. The second chapter analyzes the concept of fiscal adjustment as an instrument for stability and growth. Then, the third chapter examines the question of using fiscal policies to stimulate innovation and growth. Finally, the last chapter builds on previous studies on the overall impact of fiscal policy on economic activity, mainly production, and highlights the related vulnerabilities.