IOSR-JEF   Volume-4 ~ Issue-3

Abstract: The paper examined the effectiveness of fiscal policies in stabilizing the global economy. The annual growth rate and some macroeconomic variables such as inflation rate, unemployment rate and exchange rate for selected advanced and developing economies are used for the analysis. Time series data for these variables were obtained basically from the World Bank and tables, percentages and line graphs are the tools used to analyze the data. The results revealed that the annual growth rate for the advanced economies has been relatively stable, except for the global economic crisis which affected almost all the selected advanced countries. For the developing economies, the growth rate showed gross instability which does not follow any defined pattern. The macroeconomic variables examined showed that fiscal policies are effective in stabilizing advanced economies but not so with the developing economies. High level of corruption, insecurity, rigid and narrow tax structure are identified as the major challenges working against the effectiveness of fiscal policies in developing economies It is expected that when these challenges are addressed, fiscal policies will be more effective in stabilizing economies of developing countries.
Key Words: Corruption, Economy, Effectiveness, Fiscal policy, Global

Abstract: Monetary policy is one of the macroeconomic instruments with which monetary authority in a country employs in the management of money supply and the economy thereof to attain the fundamental objectives of price stability and maintenance of balance of payment. The monetary policy strives to explain the correlation between macro economic variables and the monetary variable and this form the focal point of this study. The study also set out to ascertain the impact of CBN money supply on the growth of Nigeria economy, ascertain the extent of correlation that exists between money supply and output. Scholars in the field opined that contractionary monetary policy negatively influences total consumption, CBLA and output. Within this framework, money supply, CLBA and output variables are analyzed for the period of 18 years (1994-2012) using Statistical package for social sciences (SPSS) tool. The findings shows that change in money supply (M2) has significant effect on variables such as CBLA and output in Nigerian economy within the period under review, Also there is a significant strong multiple correlation among Real GDP, Money supply and Commercial Banks' loans and Advances (R= 95.1%). The coefficient of Determination (R2) reveals that 90.5% of variations in RGDP were explained by our selected explanatory variables (Money supply and Commercial Banks' loans and Advances).

Abstract: Tourism is one of the most significant contributors to the Indonesia growth of economy, based on data from the Indonesia Central Bureau of Statistics in 2012, the share of national tourism to GDP is 13.9 percent and of course the contribution of the sector to be helpful for the growth of the national economy, through foreign exchange earnings as revenue from tourist consumption. Besides that, it has provided a multiplier effect to other sectors which related to the sectors. Therefore, the increasing of tourism investment and trade will be focus in the tourism development program to improve the contribution. Meanwhile, the Indonesia Coordinating Board (BKPM) stated the average national investment for the tourism sector is Rp. 2.73 billion or 6 percent from total investment during 2006-2012, in other words an investment in tourism sector has not been able to provide optimal contribution to the national economy development considering to its potential.
The purpose of this study was to analyze the determinants of investment, demand and supply of Indonesian tourism sector. Regarding to answer the problems, this research used series data from 1990 – 2012 periods; by using simultaneous model (2SLS) the model analyzed impact of investment, and international trade of Indonesia tourism sector to the national economic growth. Based on the Two Stages Least Squares method on simultaneous model, the results of the analysis gives some conclusions including: (1) tourism arrivals, tourism expenditure, investment, consumption price index, total consumption, government spending, export and import tourism affected the national tourism demand, (2) Current investment and investment on previous year, total consumption on previous year, and travel warning have positive impact to national tourism supply, (3) GDP was the most influenced variable beside Indonesia tourism price and neighbor countries' tourism price as competitors of Indonesia tourism. Finally, the simulations showed the fiscal and monetary policy impact to the national economic tourism sector.
Keyword: Impact, investment, international trade, supply and demand tourism, and economic growth