Język Polski
English
Published
:
2011-08-30
The Applicability of Keynesian Policy in Poland's Economy under Increasing Public Debt
Jarosław Mielcarek
Abstract
When most EU member countries, including Poland, are running budget deficits above the 3% (of GDP) ceiling, and many of them have also breached the 60% ceiling for the debt-to-GDP ratio, one could ask if it is still possible to pursue Keynesian economic policy which advises to stimulate economies by increasing state budget deficit and public debt. The paper specifies a formula for establishing the marginal propensity to consume for which the GDP growth rate attributable to increased government expenditure equals the growth of public debt, which means that the proportion of public debt in GDP stops growing. In both 2009 and 2010 the marginal propensity to consume in Poland did fulfill this condition. Keynesian economic policy could, therefore, have been applied in Poland in that period.(original abstract)Keywords:
Consumption, Public debt, Budget deficitMost read articles by the same author(s)
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Mielcarek, J. (2011). The Applicability of Keynesian Policy in Poland’s Economy under Increasing Public Debt. Zeszyty Naukowe Wyższej Szkoły Bankowej W Poznaniu, 35. Retrieved from https://journals.wsb.poznan.pl/index.php/znwsb/article/view/1439