Procyclical, Countercyclical and Acyclical Fiscal Policies

Abstract

This study is limited to aspects related to the nature of the applied fiscal policy. An analysis with theoretical elements contributes to the understanding of the characteristics of procyclical, countercyclical and acyclic fiscal policies. Moreover, a description of them based on the fiscal instruments used (government revenues and expenditures) facilitates the capture of the main features and implications on the economies of emerging countries compared to developed countries. The study also includes an analysis of the manifestation of gross domestic product before and after the economic crisis of 2008. The data used are quarterly, seasonally adjusted and deflated by GDP deflator to be expressed in real terms. The results indicated that the shock of the economic crisis destabilized gross domestic product for more than three quarters. The need to implement a fiscal policy optimized according to national specifications is a desideratum in terms of economic growth.

Keywords

• procyclical fiscal policy
• countercyclical fiscal policy
• acyclical fiscal policy
• fiscal instruments
• economic development