Implementation of fiscal policy in conditions of economic crisis

Abstract

The essence of this article is to analyze the possibility of using fiscal policy to mitigate the effects of the global economic crisis. This issue is important because the performance of particular socio-economic objectives must be done while ensuring sustainability of public finances in the medium and long term. The article assumes that the specific economic conditions resulting from the economic downturn forcing an escalation in the use of fiscal policy instruments, mainly the tools discretionary. This article aims to discuss the function of fiscal policy and a comparison of active and passive fiscal policy. The paper also explains the importance of the global economic crisis in the conduct of a responsible fiscal policy.