SPECIFICS OF FISCAL POLICY IN EMERGING MARKET COUNTRIES: AN IS-LM ANALYSIS

The article is devoted to the analysis of fiscal policy in emerging market countries through the prism of IS-LM model. The study results in a theoretical analysis using the IS-LM model, complemented by empirical studies that demonstrate how fiscal expansion and expenditure containment measures affect national income and interest rates in the context of developing economies. It is concluded that the IS-LM model clearly provides a deep interplay of fiscal and monetary policies, allowing us to analyze their impact on macroeconomic stability in emerging market economies.