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Learning about Fiscal Policy Uncertainty

Author

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  • Christian Matthes
  • Timothy Sablik

Abstract

In response to the financial crisis and recession of 2007-09, the federal government enacted a number of emergency fiscal policies intended to aid recovery. These included short-term stimulus measures, such as the American Recovery and Reinvestment Act of 2009, and temporary tax reductions, such as the payroll tax cut in 2010. However, the unconventional and transitory nature of these fiscal policies may have contributed to greater economic uncertainty. Given the slow recovery that has followed the recession, economists are studying how such uncertainty might impact growth.

Suggested Citation

  • Christian Matthes & Timothy Sablik, 2014. "Learning about Fiscal Policy Uncertainty," Richmond Fed Economic Brief, Federal Reserve Bank of Richmond, issue Jan.
  • Handle: RePEc:fip:fedreb:00008
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    File URL: http://www.richmondfed.org/publications/research/economic_brief/2014/pdf/eb_14-01.pdf
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    Keywords

    Economic Growth; Fiscal Policy;

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