| Journal Call no. | HG1302.Q37 |
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| Article Title | Hong Kong : macroeconomic impact of recent fiscal measures / Research Department. |
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| Is Part Of | Quarterly bulletin / Hong Kong Monetary Authority ; no.22, Feb 2000, p.1-15, illus. |
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| Abstract | The recent economic downturn has brought fiscal policy to the forefront, given the limited scope for independent monetary policy in Hong Kong. The budget recorded a deficit of 1 3/4 percent of Gross Domestic Product (GDP) in FY 1998 and is expected to have remained in the red in FY1999. How much stimulus to aggregate demand has been provided by recent fiscal measures? The conventionally measured fiscal balance is affected by cyclical conditions and irregular factors, and thus may not fully reveal the underlying policy stance. This paper provides empirical indicators of the stance that are purged of cyclical effects and other influences that distort the relationship between the fiscla balance and aggregate demand. |
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