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Fighting downturns with fiscal policy

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  • Sylvain Leduc

Abstract

Should fiscal policy be used to fight recessions? This Economic Letter examines some recent empirical studies analyzing data on the relative effects of higher spending and lower taxes on output.

Suggested Citation

  • Sylvain Leduc, 2009. "Fighting downturns with fiscal policy," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, issue jun19.
    • Handle: RePEc:fip:fedfel:y:2009:i:jun19:n:2009-20
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    References listed on IDEAS

    as
    1. Elmendorf, Douglas W. & Gregory Mankiw, N., 1999. "Government debt," Handbook of Macroeconomics,in: J. B. Taylor & M. Woodford (ed.), Handbook of Macroeconomics, edition 1, volume 1, chapter 25, pages 1615-1669 Elsevier.
    2. Cogan, John F. & Cwik, Tobias & Taylor, John B. & Wieland, Volker, 2010. "New Keynesian versus old Keynesian government spending multipliers," Journal of Economic Dynamics and Control, Elsevier, vol. 34(3), pages 281-295, March.
    3. Olivier Blanchard & Roberto Perotti, 2002. "An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output," The Quarterly Journal of Economics, Oxford University Press, vol. 117(4), pages 1329-1368.
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    Keywords

    Recessions ; Fiscal policy;

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