Counter-Cyclical Challenges of Fiscal Policy: A Comparitive Analysis of South Africa and Brics Countries

Abstract

This study analyse the consequence of counter cyclical fiscal policy after the 2008 global financial crisis. Fiscal stimulus programmes were proposed by the G20 member countries to reduce the negative impact on growth and employment of the global financial crisis. A mixed-method research methodology is followed to analyse the elevated government debt and budget deficits of developed countries and BRICS countries. The analysis of government debt in different countries pose a stark reality. Most countries do not have any scope to stimulate their economies anymore whilst the leaders of the G20 member countries propose exist strategies. This study highlights the importance of a new approach and new application of old fiscal theories to create sustained growth.

DOI: 10.5901/mjss.2014.v5n21p251