Fiscal policy cuts boost economic growth in emerging markets, study finds.
The article examines how emerging market economies can best handle economic challenges through fiscal policies. By studying data from Ukraine and EU countries, the authors found that cutting government spending is more effective than just increasing spending. Successful fiscal consolidation includes reducing government spending, leading to lower deficits and public debt. Countries with weaker fiscal policy frameworks may struggle with deficits and debt. Developing better methods for fiscal policy design is crucial for long-term economic stability.