Possibilities of using tax multipliers for stabilization in transition economies

Abstract

Within this study, the possibilities of identification and estimation of tax multipliers that are adequate for a transition economy have been analysed. These multipliers can be regarded as macroeconomic policy stabilizers, while their application is coordinated with the objectives established within the development strategies. The authors discuss the problem of equilibrating monetary stabilizers with the tax ones, which are used namely in transition economies to achieve sustainable economic growth, basing on the example of the Republic of Moldova.