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    Fiscal Policy Timing

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    How do the fiscal policy changes play a role in the theory of political business cycles? Is this a valid role for fiscal policy?

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    How does the fiscal policy changes play a role in the theory of political business cycles?

    Fiscal policy changes plays the main role in the theory of political business cycles. The theory of political business cycle holds that cycles result from the election of political parties with different policy regimes. For instance, if political party X decides to stimulate policies there might be growth but inflation may zoom to unacceptable levels leading to the defeat of the party at the elections. If ...

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    This solution gives you strong points concerning fiscal policy timing

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