The Stabilising Role Of The Fiscal And Budgetary Policies Within The Simplified Keynesian Model

Abstract

The purpose of the paper is to investigate the fiscal and budgetary policies using the simplified Keynesian model. It focuses on the imbalance in the fiscal and budgetary policies trying to justify the rationality of the deficits: the political strategic aspect to leave a hardto- administrate legacy, and the inter-party conflict, which may influence the budgetary decisions of the government. The purpose of the presentation is to show the stabilizing role of the public budget in relation with the full employment goal.