Economic stimulus package: How effective are they??

Abstract

Keynesian Theory emphasizes on Government spending to revive a stagnant or decelerating economy. This fiscal policy was practised by many countries negatively impacted by economic downturns. This move , though , has a certain degree of limitations, as the Government need to realize longer term solutions are need for its budget deficits, if any. Nonetheless, such measures are proven, time and again to be effective in revive the stagnating economy. This paper is thus to examine, from the Malaysian context, the success or otherwise, of such strategy with analysis using trends and descriptive readings from statistical data from BNM and IMF