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International Fiscal Spillovers: A Review Essay

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  • Michael B. Devereux

    (University of British Columbia)

Abstract

This paper provides a review of the empirical literature on fiscal multipliers and international fiscal spillovers. We discuss the various empirical methodologies employed in measuring spillovers, and the degree to which estimated spillovers depend on the state of the business cycle, the stance of monetary policy, the exchange rate regime, and other factors. In an environment where monetary policy is constrained by the zero bound, both fiscal multipliers and international fiscal spillovers are likely to be much larger than in normal times. In general, this prediction is supported in the empirical literature.

Suggested Citation

  • Michael B. Devereux, 2018. "International Fiscal Spillovers: A Review Essay," Korean Economic Review, Korean Economic Association, vol. 34, pages 29-50.
    • Handle: RePEc:kea:keappr:ker-20180101-34-1-02
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    1. Senekovič Marko & Kavkler Alenka & Bekő Jani, 2019. "Estimation of Government Spending Multiplier in EU Economies," Naše gospodarstvo/Our economy, Sciendo, vol. 65(1), pages 16-29, March.
    2. Devereux, Michael B. & Yu, Changhua, 2019. "Models of international fiscal spillovers," Economics Letters, Elsevier, vol. 175(C), pages 76-79.

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    More about this item

    Keywords

    Fiscal Multipliers; Fiscal Spillovers; Exchange Rate Regime;
    All these keywords.

    JEL classification:

    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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