Anusha Chari, Peter Blair Henry, Friday, March 6, 2015 - 00:00

Peter Temin, David Vines, Friday, November 14, 2014 - 00:00

Jean Pisani-Ferry, Friday, November 7, 2014 - 00:00

Hugh Rockoff, Saturday, October 4, 2014 - 00:00

Roberto Perotti, Saturday, September 13, 2014 - 00:00

Mark Hoekstra, Steve Puller, Jeremy West, Wednesday, September 3, 2014 - 00:00

Barry Eichengreen, Kevin Hjortshøj O’Rourke, Miguel Almunia, Agustín S. Bénétrix, Gisela Rua, Wednesday, November 18, 2009 - 00:00

There is one important source of information on the effectiveness of monetary and fiscal stimulus in an environment of near-zero interest rates, dysfunctional banking systems and heightened risk aversion that has not been fully exploited: the 1930s. This column gathers data on growth, budgets and central bank policy rates for 27 countries covering the period 1925-39 and shows that where fiscal policy was tried, it was effective.

Robert Barro, Charles Redlick, Friday, October 30, 2009 - 00:00

The recent global recession has made the efficacy of fiscal-stimulus packages one of the most prominent policy debates in economics today. This column finds that the multiplier of defence spending falls in a range of 0.6 to 0.8 and argues that non-defence multipliers are unlikely to be larger. It says we should be sceptical when policymakers claim government-spending multipliers in excess of one and suggests tax cuts may be preferable to spending increases.

Volker Wieland, Saturday, September 5, 2009 - 00:00

Eurozone governments have engaged in substantial fiscal stimulus. This column argues against further fiscal measures, claiming that forward-looking firms and households will cut their expenditure in response to governmental expansions. It warns that further fiscal efforts risk eroding financial and monetary policies that are combating the crisis.

J. Bradford DeLong, Monday, March 16, 2009 - 00:00

There are legitimate reasons to fear that deficit-spending fiscal boost programs will not work well enough and have high enough longer-term costs to be not worth doing. This column says we do not need to fear bottleneck-driven inflation, capital flight-driven inflation, crowding-out of investment spending, nor reaching the limits of debt capacity because we will see them coming in time.

Richard Clarida, Monday, March 16, 2009 - 00:00

Policymakers have committed substantial sums to addressing the global recession and the global financial crisis, but there is real doubt about their effectiveness. This column explains why the fiscal stimulus might fail.

Axel Leijonhufvud, Friday, February 13, 2009 - 00:00

This recession is different. Balance sheets of consumers, firms, and banks are under strain. The private sector is bent on reducing debt and this offsets Keynesian stimulus more than standard flow calculations would suggest. Bank deleveraging is by far the most dangerous. Fiscal stimulus will not have much effect as long as the financial system is deleveraging.

CEPR Policy Research