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Why Fiscal Stimulus is Unlikely to Work

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  • Kevin A. Hassett

Abstract

This paper reviews the empirical literature on countercyclical policy. It finds that three types of countercyclical policies have been studied in the literature: built‐in stabilizers, temporary policy changes and more permanent policy changes. The literature is decidedly mixed on the effectiveness of temporary changes, but more hopeful concerning the other two.

Suggested Citation

  • Kevin A. Hassett, 2009. "Why Fiscal Stimulus is Unlikely to Work," International Finance, Wiley Blackwell, vol. 12(1), pages 75-91, May.
    • Handle: RePEc:bla:intfin:v:12:y:2009:i:1:p:75-91
    DOI: 10.1111/j.1468-2362.2009.01237.x
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    Cited by:

    1. Dilla, Diana, 2017. "Staatsverschuldung und Verschuldungsmentalität [Public Debt and Debt Mentality]," MPRA Paper 79432, University Library of Munich, Germany.

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