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Does the Effectiveness of Fiscal Stimulus Depend on Economic Context?

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  • Steven M. Fazzari

Abstract

The topic of this session of the INET conference is a question: does the effectiveness of fiscal policy in stabilizing an economy depend on the underlying economic context in which the policy is implemented? The answer to such a broad question must certainly be yes, but I argue here that the answer differs across dimensions of “context.”

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Bibliographic Info

Paper provided by Institute for New Economic Thinking (INET) in its series INET Research Notes with number 1.

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Date of creation: Apr 2012
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Handle: RePEc:thk:rnotes:1

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  1. Alan J. Auerbach & Yuriy Gorodnichenko, 2012. "Fiscal Multipliers in Recession and Expansion," NBER Chapters, in: Fiscal Policy after the Financial Crisis, pages 63-98 National Bureau of Economic Research, Inc.
  2. Steven M. Fazzari, 2009. "Keynesian macroeconomics as the rejection of classical axioms," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 32(1), pages 3-18, September.
  3. Steven M. Fazzari & James Morley & Irina Panovska, 2012. "State-Dependent Effects of Fiscal Policy," INET Research Notes 3, Institute for New Economic Thinking (INET).
  4. Alan J. Auerbach & Yuriy Gorodnichenko, 2010. "Measuring the Output Responses to Fiscal Policy," NBER Working Papers 16311, National Bureau of Economic Research, Inc.
  5. Valerie A. Ramey, 2011. "Can Government Purchases Stimulate the Economy?," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 673-85, September.
  6. Steven M. Fazzari, 1995. "Why Doubt the Effectiveness of Keynesian Fiscal Policy?," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 17(2), pages 231-248, January.
  7. Jonathan A. Parker, 2011. "On Measuring the Effects of Fiscal Policy in Recessions," NBER Working Papers 17240, National Bureau of Economic Research, Inc.
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