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The Effectiveness of Fiscal Policy in Stimulating Economic Activity A Review of the Literature

This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multiplie...

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Bibliographic Details
Main Author: Mahfouz, Selma
Other Authors: Hemming, Richard, Kell, Michael
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2002
Series:IMF Working Papers
Subjects:
Public Finance & Taxation
Government Debt Management
Fiscal Multipliers
Debt Management
Fiscal Policy
Debts, Public
Debt
National Government Expenditures And Related Policies: General
Sovereign Debt
Expenditure
Expenditures, Public
Macroeconomics
Public Financial Management (pfm)
Fiscal Stimulus
Public Finance
Fiscal Policies And Behavior Of Economic Agents: General
United States
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
Description
Summary:This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers
Physical Description:52 pages
ISBN:9781451874716

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