Bob concept of is-lm model



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Is-lm model and determining the nature the budget-tax and monitary policy of the state

Y2Y1 Y Y2 Y1 Y
Form: 14.15, a. ModelIS-LM 14.15, PP. Gross demand curve
What can cause the ad curve to shift? Since the ad curve generalizes the conclusions of the IS-LM model, strokes that shift the IS curve or the LM curve also cause the ad curve to shift. Monetary and financial incentive measures increase the rate of return on the IS-LM model and therefore shift the ad curve to the right.


























i LM 1 va LM

LM2












Y Y












R R

















YY
a) b)
1.2 The essence and methods of Budget –Tax Policy
Budget-tax policy refers to measures that include changes in public spending and taxes aimed at ensuring full employment in the economy, balance of the balance of payments and economic growth. The state will solve the problem of a decrease in iqsadiyot in the short term in exchange for increasing government spending or reducing losses, yohud carrying both at the same time.
In the economy, a restrictive fiscal policy - fiscal restriction is carried out in situations where inflation can arise as a result of full employment and excessive demand. The restrictive fiscal policy consists in limiting the periodic growth of the economic-Yot by reducing public spending (g) or increasing taxes (T) or, if not, running both events at the same time.
In short-term periods, these activities reduce demand inflation. In the long term, however, high taxes can lead to stagnation in the economy.
Government spending, tax and balanced budget multipliers.
In the short term, the Budget-Tax Policy will be influenced by the effect of government spending, tax and balanced budget multipliers.
ΔG ↑ → ΔE↑ (ΔEqΔC) → ↑ΔY(ΔY=ΔC x mg)
Balanced gross production volume, where taxation for a closed economy is not taken into account:
Y=1/(1-b)(a+I+G)
Where: 1/(1-b) – cost multiplier in a situation where taxation in a closed economy is not taken into account;
(a+i+G) – autonomous cost;
b=MPC is the main factor determining the multiplier quantity, being the marginal tendency to the istemol.
The volume of balanced gross production, in which taxation is taken into account for a closed economy:
Y=1 / (1-b(1-t)) (a+i+G
Where: 1 / (1-b (1 – t)) is the cost multiplier in a closed economy;
T is the marginal tax rate.
t =ΔY/ΔT
Balanced gross production volume, in which taxation is taken into account for an open economy:
Y=1 / (1(1-b(1-t))+m') (A+i+G
Where: 1/1(1-b(1-t))+m’ is the state cost multiplier in open economy.
The effect of tax multiplications is to feed on multiple changes in consumption as a result of a single change in taxes, such as government spending.
T↓(ΔT) Yd↑ (ΔYd= -ΔT) C↑ (ΔC=b(-ΔT)) E↑ (ΔE=b(-ΔT))  Y↑ (ΔY=b(-ΔT) C↑ (ΔC=b(b(-ΔT)) E↑ (ΔE=b2(-ΔT)) Y↑ (ΔY=b2(-ΔT)) 
C↑ (ΔC=b(b2(-ΔT))) va h.k.
Hence, the tax multiplier can be described as follows:
ΔY-b
----------- = -------
ΔT 1-b
Considering the net export function and calculating the tax multiplier for an open economy, um_t=(-b) / (1-b (1-7)+m')is
Hence the change in the volume of GDP from this to many times as a result of reducing or increasing taxes by one amount depends on the marginal propensity to consumption, the marginal tax rate and the marginal propensity to import
In an open economy, the balanced production volume model when considering the government cost multiplier and tax multiplier would be:
Y=1/(1-b (1-t)+m') (A+I+G)- b/(1-b (1-t)+m') T_a
Let's say the government increased its costs by some amount, and it also increased the amount of tax to finance these expenses. In this case, the total change in income as a result of the simultaneous change of the amounts of government spending and autonomous taxes in the same amount, the amount of ΔY will be equal to:
Y=1/(1 - B(1-t)+M') (∆G)-B / (1-B (1-t)+m') ∆T_a if government spending and autonomous taxes increase by the same amount the balanced production volume increases by the same amount or less. This is referred to as a balanced bujet multiplier. The balanced bujet multiplier is equal to or smaller than one.
Discrete and nodiskret fiscal policy. Budget deficit and surplus. As a result of the government's adoption of special decisions aimed at changing the employment level, volume of production, inflation rates and the state of the balance of payments, the targeted transformation of public spending, taxes and the balance of the state budget is called a discrete fiscal policy.
Nodiskret fiscal policy – provides for automatic changes in government spending, taxes and state budget balance. Nodiscret fiscal policy is based on fixed stabilizers. The role of built-in stabilizers in developed countries is played by the progressive tax system, the State transfer system and the profit participation system. Nodiscrete fiscal policy does not require direct government intervention to mitigate periodic fluctuations.
The level of established stability of the economy depends on the amounts of periodic budget deficits and redundancies. Periodic deficit (redundancy) is the state budget deficit (redundancy) caused by automatic reduction (increase) of tax revenues and automatic increase (decrease) of government spending in the context of economic activity pasa-yishi (increase).State budget deficit financing:
1. Monetary emission;
2. Issuing state bonds;
3. Increase tax revenues to the state budget.
Increasing the money supply in circulation will lead to inflation when the deficit of the state budget is compensated by issuing money.
The budget deficit is financed mainly by non-inflationary methods, namely through the issuance of government bonds and funds from privatization. The tax-budget policy in our republic is aimed at ensuring macroeconomic stability, investing in sustainable networks, developing the educational sector intensively, social protection of the population.
4. Budget-tax policy of the Republic of Uzbekistan and its features in the context of the global financial and economic crisis.
When establishing measures to further improve the fiscal policy implemented in our country, to use taxes and budget costs as practical means of promoting sustainable growth of the economy, it will be necessary to take into account the global financial and economic crisis that has arisen in the world economy today and is also affecting the economy of our country.
In order to stimulate domestic demand, measures are being carried out to increase the monthly salary of workers of budgetary organizations, pensions, stependas benefits.
The implementation of this complex of measures aimed at the sustainable development of the country in the context of the global economic crisis allows to ensure economic growth and macroeconomic stability in the economy of Uzbekistan and increase the living well-being of our people.



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