The Procyclicalists: Fiscal austerity vs. stimulus

Jeffrey Frankel 07 August 2012

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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).

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Topics:  Macroeconomic policy

Tags:  fiscal stimulus, austerity, countercyclical fiscal policy