Oddziaływanie ekspansji fiskalnej wspomaganej przez monetarną na produkcję – ujęcie teoretyczne i na przykładzie wybranych gospodarek
The impact of money accommodated fiscal expansion on production – theory and experience of selected countries

Summary/Abstract: The article discusses the problem of fiscal expansion ineffectiveness observed in many countries after 2007. It contains two parts. The first explains the causes of this ineffectiveness. It is a theoretical analysis of economic mechanisms that can be at work in specific conditions, i.e., monetary accommodation, low economic activity, low interest rates and public debt. They all weaken the demand effect of budget deficit. The conclusions are drawn from the combined analysis the modified Keynesian liquidity preference, Tobin’s analysis of public debt and q theory. In the second part the above mechanisms are illustrated by the experiences of several economies (selected euro zone countries, US, UK and Poland). We observe that despite large cyclical budget deficits in 2008–2009 the economic activity remains low and the conditions rendering fiscal expansion impotent still persist.

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