Structural adjustment and fiscal policy: the reflation debate

Abstract

Addressing a group of professional economists and practitioners it is only common practice to define parameters within which I intend to discuss the topic assigned to me. For our discussion this morning I propose, structural adjustment define structural therefore, to public finances and the relative influence of public finance somewhat narrowly to include only structural developments concerning the relative roles of public and private consumption and investment. Of course for a small open economy like Malaysia it would not be proper not to finance on external discuss the balances or vice versa. In short, I will discuss internal and external balances arising from fiscal policy which consists of measures related to public sector revenue and expenditure, i.e. changes in public expenditure and/or changes in taxation.