Imbalance of the public finance in the context of Keynesian and Non-Keynesian effects of fiscal policy limitation

Abstract

CER Comparative European Research 2016 Proceedings | Research Track of the 5th Biannual CER Comparative European Research Conference International Scientific Conference for Ph.D. students of EU countries October 28-31, 2016 | London Proceedings document published in collaboration with SCIEMCEE - Scientific Conference Platform. The proceedings with all papers are available at www.sciemcee.org. ; The purpose of this article is to point out the importance of the size of public debt and deficit in the context of Keynesian and non-Keynesian effects of fiscal policy limit. To achieve this objective primarily were used methods of analysis of the available literature and presentation of statistical data. Considerations include, among others, the presentation of public debt and deficit in the context of economic growth. Expansionary fiscal policy often caused by economic fluctuations contributes to the deepening of public finance imbalance with frequent decline in GDP growth. The restrictive policy influences on improving the situation of the public finance sector in the long-term with at least moderate economic growth.