Tax policy as a factor in stimulating a favorable business climate within the framework of anti-cyclic economic regulation (using the USA and Germany as examples)

This paper investigates the role of tax policy as a critical instrument in fostering a favorable business climate within the framework of countercyclical economic regulation, with a comparative analysis of the United States and Germany. It examines the theoretical foundations of countercyclical fiscal policy, the mechanisms through which tax instruments influence economic activity, and the historical application of tax measures during key economic downturns. The empirical section employs macroeconomic data from 2000 to 2023, using descriptive statistics and regression analysis to evaluate the impact of tax burden changes on GDP growth, unemployment, and investment levels. Findings suggest that well-designed and timely tax policies can significantly reduce cyclical volatility and enhance business resilience. Recommendations are proposed for optimizing tax systems to balance short-term stabilization with long-term sustainability.

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Publication Details

Journal
Journal of Monetary Economics and Management
Published
2026-08-20
DOI
https://doi.org/10.26118/2782-4586-2026-274-282
Primary Topic
Regional resilience and development
Type
article
Field-Weighted Citation Impact
0.00
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article

Tax policy as a factor in stimulating a favorable business climate within the framework of anti-cyclic economic regulation (using the USA and Germany as examples)

Elmar Dadashev, Ikram Dzhabrailov, Lachin Abyshly
Journal of Monetary Economics and Management
Regional resilience and development
article

Tax policy as a factor in stimulating a favorable business climate within the framework of anti-cyclic economic regulation (using the USA and Germany as examples)

Elmar Dadashev, Ikram Dzhabrailov, Lachin Abyshly
article en

Abstract

This paper investigates the role of tax policy as a critical instrument in fostering a favorable business climate within the framework of countercyclical economic regulation, with a comparative analysis of the United States and Germany. It examines the theoretical foundations of countercyclical fiscal policy, the mechanisms through which tax instruments influence economic activity, and the historical application of tax measures during key economic downturns. The empirical section employs macroeconomic data from 2000 to 2023, using descriptive statistics and regression analysis to evaluate the impact of tax burden changes on GDP growth, unemployment, and investment levels. Findings suggest that well-designed and timely tax policies can significantly reduce cyclical volatility and enhance business resilience. Recommendations are proposed for optimizing tax systems to balance short-term stabilization with long-term sustainability.

Journal of Monetary Economics and Management
Baku State University (AZ)
Decent work and economic growth
Openalex Percentile: Top 4%
Regional resilience and development
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