The Procyclicalists: Fiscal austerity vs. stimulus

Jeffrey Frankel, 7 August 2012



The world is seized by a debate between fiscal austerity and fiscal stimulus. Opponents of austerity worry about contractionary effects on the economy. Opponents of stimulus worry about indebtedness and moral hazard (see Corsetti 2012).

Topics: Macroeconomic policy
Tags: austerity, countercyclical fiscal policy, fiscal stimulus

Vox eBooks