Question

How did governments ( Fiscal policy ) responded to the global financial crisis?

Answer 1

4 Lessons Responded To The Global Financial Crisis :-

• Counter-cyclical fiscal policy can be an effective tool in crises; its impact is country- and situation-specific.

• Fiscal policy should be counter-cyclical in both good and bad times.

• To be effective, fiscal stimulus must be large enough, temporary, and targeted.

• Fiscal policy alone cannot fix structural problems, and it may exacerbate them.