Keynesian Fiscal Stimulus: What Have We Learned from the Great Recession?
AbstractWhat have we learned from the Great Recession about Keynesian fiscal stimulus? This article contains five sections that develop the following five points: (1) There is confusion about what constitutes Keynesian fiscal stimulus; (2) Economists are deeply divided about fiscal stimulus; (3) A fundamental error has been committed by an influential economist in estimating the recession magnitude of the Keynesian multiplier; (4) A fundamental error has been committed by two influential economists in their analysis of the impact of the 2008 tax rebate on consumption spending; (5) Advocates of fiscal stimulus in recession should support keeping government debt low in prosperity.
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Bibliographic InfoPaper provided by University of Delaware, Department of Economics in its series Working Papers with number 11-11.
Length: 38 pages
Date of creation: 2011
Date of revision:
Publication status: Published in Journal of Post-Keynesian Economics, Vol. 34, No.2, 2012.
Contact details of provider:
Postal: Purnell Hall, Newark, Delaware 19716
Phone: (302) 831-2565
Fax: (302) 831-6968
Web page: http://www.lerner.udel.edu/departments/economics/department-economics/
More information through EDIRC
fiscal stimulus; fiscal policy; Great Recession;
Find related papers by JEL classification:
- E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2011-08-15 (All new papers)
- NEP-HPE-2011-08-15 (History & Philosophy of Economics)
- NEP-MAC-2011-08-15 (Macroeconomics)
- NEP-PKE-2011-08-15 (Post Keynesian Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Seidman Laurence, 2010. "Reducing Future Deficits While Stimulating Today's Economy," The Economists' Voice, De Gruyter, vol. 7(3), pages 1-5, August.
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- Kenneth A. Lewis & Laurence S. Seidman, 2010.
"Did the 2008 Rebate Fail? A Response to Taylor and Feldstein ,"
10-06, University of Delaware, Department of Economics.
- Kenneth A. Lewis & Laurence S. Seidman, 2011. "Did the 2008 rebate fail? a response to Taylor and Feldstein," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 34(2), pages 183-204, January.
- Kenneth A. Lewis & Laurence S. Seidman, 2011. "Did the 2008 Rebate Fail? A Response to Taylor and Feldstein," Working Papers 11-10, University of Delaware, Department of Economics.
- Laurence S Seidman & Kenneth A Lewis, 2009. "Does Fiscal Stimulus Cause Too Much Debt?," Business Economics, Palgrave Macmillan, vol. 44(4), pages 201-205, October.
- David S. Johnson & Jonathan A. Parker & Nicholas S. Souleles, 2004.
"Household Expenditure and the Income Tax Rebates of 2001,"
136, Princeton University, Woodrow Wilson School of Public and International Affairs, Discussion Papers in Economics..
- Nicholas S. Souleles & Jonathan A. Parker & David S. Johnson, 2006. "Household Expenditure and the Income Tax Rebates of 2001," American Economic Review, American Economic Association, vol. 96(5), pages 1589-1610, December.
- David S. Johnson & Jonathan A. Parker & Nicholas S. Souleles, 2004. "Household Expenditure and the Income Tax Rebates of 2001," NBER Working Papers 10784, National Bureau of Economic Research, Inc.
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