The IMF grabbed headlines and upset officials earlier this month when it released an analysis which concluded that, starting in 2009, the fiscal policy multiplier has actually been considerably larger than previously supposed (IMF 2012).
Gauging the multiplier: Lessons from history
Barry Eichengreen, Kevin H O’Rourke, 23 October 2012
What is the size of the multiplier? An estimate one can’t refuse
Giancarlo Corsetti, Saverio Simonelli, Antonio Acconcia, 4 April 2011
How much more demand, output, and employment can we expect from expansionary fiscal stimulus? Conversely, how much macroeconomic pain can we expect from a contraction dictated by the need to keep public debt on a sustainable path?
Measuring the output responses to fiscal policy
Alan J Auerbach, Yuriy Gorodnichenko, 3 September 2010
The effect of fiscal policy on output – and its components – has long been a central part of fiscal policy analysis. And yet, as has been made clear by the recent debate over the likely effects of fiscal stimulus in the US and elsewhere, economists are a long way from reaching a consensus. Indeed economists remain divided over areas such as:
How big are fiscal multipliers? New evidence from new data
Enrique G. Mendoza, Carlos A. Vegh , Ethan Ilzetzki, 1 October 2009
The economics profession did not and does not agree on one question that is critical in the evaluating governments’ responses to the crisis: How large is the stimulus impact of fiscal spending?
The fiscal stimulus debate: “Bone-headed” and “Neanderthal”?
Volker Wieland, 31 March 2009
Not long ago, Paul Krugman warned European governments that
A lot of bucks, but how much bang?
Richard Clarida, 16 March 2009
“We have involved ourselves in a colossal muddle, having blundered in control of a delicate machine, the workings of which we do not understand” - John Maynard Keynes, “The Great Slump of 1930”, published December 1930.
- Fiscal consolidation: At what speed?Blanchard, Leigh
- Public debt and economic growth, one more timePanizza, Presbitero
- Escaping liquidity traps: Lessons from the UK’s 1930s escapeCrafts
- The lessons of the North Atlantic crisis for economic theory and policyStiglitz
- Rethinking macroeconomic policyBlanchard
- A tale of two depressions: What do the new data tell us? February 2010 updateEichengreen, O’Rourke
- Educated in America: College graduates and high school dropoutsHeckman, LaFontaine
- Eurozone breakup would trigger the mother of all financial crisesEichengreen
- Debt, deleveraging, and the liquidity trap: A new modelKrugman
- Panic-driven austerity in the Eurozone and its implicationsDe Grauwe, Ji
Reichlin, Baldwin, 14 April 2013