Factors influencing the effectiveness of fiscal policy: 1) the flexibility of aggregate supply: There must be a flexible able to absorb the demand pull otherwise any expansionary fiscal measures may increase production but at the expense generating inflation. In bid situations rigid fiscal policy may be ineffective to achieve internal balance. 2) THE NATURE AND FLEXIBILITY OF INTERMEDIATE OBJECTIVES: Net external demand is a standalone component that under no circumstances be regarded as intermediate target of budget policy stabilization. By contrast the behavior of exports and imports are a determinant of economic growth ac / p. [And domestic demand ... better to act on consumption or investment?] The private FBC is not raised as an intermediate target of stabilization policy. It is also a variable sensitive to changes in economic conditions, intensity of reaction and asymmetric bit predictable. The possible field of action of the budgetary policy of stabilization is limited private consumption. This is a strong trend variable pro-cyclical in upturns tend to grow more strongly than the economy into recession while reducing harder. Most consumer spending is directed to the purchase of real demand on the price too rigid. 3) THE BEHAVIOR OF ECONOMIC: From the Keynesian perspective in which agents make their consumption decisions based on the level current disposable income and Monetarist perspective, throughout his life

4) THE NATURE AND FLEXIBILITY OF THE INSTRUMENTAL VARIABLES: For years, economic policy makers taxes granted to a secondary role in the stabilization policies by ff reasons: 1 - taxes are less multiplier effect on economic activity public spending. 2 - Their use presents problems of asymmetry to be well accepted socially cuts for expansionary policies but are not tax increases of restrictive policies so that fiscal factors tend to consolidate. 3 - taxes represent delays execution time that may impair its effectiveness as a stabilizer. 4 - Taxes are the main source of financing public expenditure. And within public spending ... more public investment, public consumption or transfers? FBC-public expenditures are an important tool for influencing economic activity are associated as the multiplier effect. - Within the public consumption, the departure of personnel costs is very flexible so if handled by the side of wages as the side of recruitment. - The use of transfers is always attractive to politicians as a stabilization tool.