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How Stimulative Has Fiscal Policy Been Around the World?

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  • Esteban Pérez Caldentey
  • Matías Vernengo

Abstract

The current credit crisis and worldwide policy response have resurrected the reputation of fiscal policy. But the authors contend that it is still widely misunderstood. Many of those who now support fiscal stimulus—such as more government spending—have a limited view of its usefulness, one advocated by the pre-Friedmanite economists of the University of Chicago. It stands in contrast to the more thorough Keynesian revolution, which they argue now more than ever needs to be understood. The result has been far smaller fiscal stimulus packages than are necessary to return nations to rapid growth.

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File URL: http://mesharpe.metapress.com/link.asp?target=contribution&id=EJ201101447M8G62
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Bibliographic Info

Article provided by M.E. Sharpe, Inc. in its journal Challenge.

Volume (Year): 53 (2010)
Issue (Month): 3 (May)
Pages: 6-31

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Handle: RePEc:mes:challe:v:53:y:2010:i:3:p:6-31

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Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106043

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