Title: A review and research agenda of fiscal policy post 2008 financial crisis

Authors: Deepti Ahuja; Deepak Pandit

Addresses: Indian Institute of Management Rohtak, Management City NH-10 Southern Bypass, Sunaria, Rohtak-124010 Haryana, India ' Jaipuria Institute of Management, Noida, A-32, opposite IBM, Sector 62, Noida, Uttar Pradesh 201309, India

Abstract: The financial crisis of 2008 has exploded the government debt levels and brought fiscal policy to the forefront of policy debates. The environment of interest rate close to zero bound, with the tumbling financial markets revamped the importance of fiscal policy in stimulating the economy. In addition to this, the Covid-19 pandemic has also intensified the urgency of fiscal policy action. In this article, the academic literature on fiscal policy was examined in light of developments that took place post-2008 financial crisis. Following a concept-based methodology, the paper clustered the fiscal policy literature under three heads: 1) cyclical pattern of fiscal policy; 2) fiscal consolidation strategies; 3) effectiveness of fiscal policy. The study provides an insight into the importance of countercyclical fiscal policy especially during health emergencies such as Covid-19 pandemic that would be required to promote the economic development of the society as a whole.

Keywords: fiscal policies; global recession; fiscal consolidation; income inequality; Covid-19.

DOI: 10.1504/IJICBM.2021.118896

International Journal of Indian Culture and Business Management, 2021 Vol.24 No.2, pp.225 - 246

Received: 07 May 2020
Accepted: 08 Jul 2020
Published online: 09 Nov 2021 *

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