Optimal fiscal policy boosts economic growth in Poland, study finds.
The article explores how fiscal policy affects the economy in the long term, focusing on Poland. By creating a model that considers public deficit, taxes, and debt levels, the researchers identify optimal fiscal policies that can benefit the economy. They compare scenarios where economic agents act independently versus a coordinated approach by a social planner. The study shows that certain fiscal policy measures can help economic agents address externalities and improve overall economic outcomes in Poland.