5. Fiscal Policy and Its Impact on Private Sector Activity
Author:
Dale Chua https://isni.org/isni/0000000404811396 International Monetary Fund

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Abstract

In the absence of a national currency, fiscal policy is the main policy instrument available for macroeconomic management in the West Bank and Gaza Strip. Consequently, the soundness of fiscal policies has far-reaching implications for achieving a high level of sustainable economic growth. In addition to its impact on aggregate demand, the composition of government expenditures and the efficiency of the tax system will affect total factor productivity in the economy and private sector investment and growth in particular.

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