How Tax Distortion in the Global Economy Weakened the Obama Stimulus
Why was the Obama administation's estimate of the jobs impact of the 2009 fiscal stimulus so far off? The economists used an average of Keynesian multipliers. But savings rose rapidly during the Great Recession, and the economists also underestimated leaks due to imports, partly the result of foreign investment by American companies, argues Howard Wachtel. Thus the multiplier was lower, but there are policies that can remedy that. He proposes policies to reduce the leakages.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 54 (2011)
Issue (Month): 6 (November)
|Contact details of provider:|| Web page: http://mesharpe.metapress.com/link.asp?target=journal&id=106043|
When requesting a correction, please mention this item's handle: RePEc:mes:challe:v:54:y:2011:i:6:p:14-25. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Chris Nguyen)
If references are entirely missing, you can add them using this form.