U.S. fiscal policy: headwind or tailwind?
AbstractAggregate state, local, and federal fiscal policy was expansionary during the Great Recession and the initial stages of recovery, providing a tailwind to economic growth. Federal fiscal policy in particular was more expansionary than usual, according to a historical analysis, even when the weakness of the economy is taken into account. However, during the past year, aggregate government budgetary policy has reversed course. Over the next few years, as federal fiscal policy shifts toward austerity, it is likely to be a headwind against economic growth.
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Bibliographic InfoArticle provided by Federal Reserve Bank of San Francisco in its journal FRBSF Economic Letter.
Volume (Year): (2012)
Issue (Month): July 2 ()
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- John C. Williams, 2012. "The outlook and monetary policy challenges," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue July 23.
- repec:fip:fedfsp:y:2012:i:july23:n:2012-22 is not listed on IDEAS
- repec:fip:fedfsp:y:2012:i:sep24 is not listed on IDEAS
- John C. Williams, 2012. "The economic outlook and challenges to monetary policy," Speech 110, Federal Reserve Bank of San Francisco.
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