the role of government(정부의 역할 변화)

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the role of government(정부의 역할 변화)

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For centuries, the role of government has been changed by political, economic, and even ideological situations. So I will focus on the changing of the role of government in this report. Richard Abel Musgrave, who was famous economist, researched the role of government for the view of public finance in his book.(Musgrave, 1959) We can adapt his idea by considering the fiscal policy or fiscal department’s role as the role of government. We can group under three headings the use and object of fiscal instruments to (1) secure adjustments in the allocation of resources; (2) secure adjustments in the distribution of income and wealth; (3) secure economic stabilization.

Let’s now think of each of these functions as being performed by a particular branch of our imaginary Fiscal Department. These branches may be referred to respectively as the Allocation, Distribution, and Stabilization Branches. The manager of Allocation Branch must determine what adjustments in allocation are needed, who is to bear the cost, and what revenue and expenditure policies are required to achieve the desired objectives. The manager of the Distribution Branch must determine what steps are needed to establish the desired or “proper” state of distribution, and the manager of the Stabilization Branch must decide what must be done to secure price-level stability and full employment. Each manager is to plan his job on the assumption that the other two branches will perform their respective functions properly.

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