Some Fiscal and Monetary aspects of Consumption Theory

Sulkhan Tabaghua, Nikoloz Ostapenko


Consumption theory and analysis of consumption function are the keys in macroeconomics. It is important for the analysis of the function of savings and hence for the investment resources, long-term economic equilibrium and short-term economic fluctuations, for the analysis of conditions and multiplier effect, so consumption theories have fiscal and monetary components that influence in the efficiency of economic policy development or implementation.

During the planning of the government’s economic policy, the significance of the consumption theory and consumption function has long been an object of the research of economists. According to the history of the economy in many cases, the very changes occurred in consumptions had been the major precondition of the economic crisis.

Present research analyzing fiscal and monetary aspects of consumption in economic theories developed by different economic school representatives as well as the importance of consumption expenditure fluctuation for sustainable economic growth.


consumption function, economic growth, expenditure, fiscal policy, monetary policy.


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