The Nation State in the Global Economy

Abstract

The paper revisits the use of Fiscal Policy as a viable instrument of public policy. Once dominated the landscape as a policy instrument in the nation state economy, it has all but abounded in the 21st century. The paper shows a revival of fiscal policy to address issues in the global economy, in particular global spillover. Using data for two samples; developed and developing economies it highlights the spatial dimension of public functions in the global economy. (JEL H3, H7)

Keywords

• state and local government; fiscal policies
• spillovers