Tag: Fiscal Stimulus: A boost in the aggregate demand in the short-run

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Fiscal stimulus will boost demand in short-run but create instability in long-run: ICRA

Dec 11, 2019 (LBO) – The Government of Sri Lanka (GoSL) reduced variety of taxes substantially in an attempt to revive the economy, which could possibly cost over LKR 500 Bn according to government’s own estimates. Whilst acknowledging the potential boost to the aggregate demand and corporate profitability from the fiscal stimulus in the short-run, […]