Fiscal policy changes could transform economies and reshape societies worldwide.
The article explores what factors determine how fiscal policies and tax reforms affect the economy. By using a special model, the researchers found that things like how long people plan for the future, access to money, how easily people can find work, and how competitive markets are all play a big role in how fiscal policies work. They looked at four important issues in big and small economies: changing government debt, spending more money, changing taxes, and privatizing retirement savings.