Keynesian Fiscal Stimulus: What Have We Learned from the Great Recession?
What have we learned from the Great Recession about Keynesian fiscal stimulus? This article contains five sections that develop the following five points: (1) There is confusion about what constitutes Keynesian fiscal stimulus; (2) Economists are deeply divided about fiscal stimulus; (3) A fundamental error has been committed by an influential economist in estimating the recession magnitude of the Keynesian multiplier; (4) A fundamental error has been committed by two influential economists in their analysis of the impact of the 2008 tax rebate on consumption spending; (5) Advocates of fiscal stimulus in recession should support keeping government debt low in prosperity.
|Date of creation:||2011|
|Publication status:||Published in Journal of Post-Keynesian Economics, Vol. 34, No.2, 2012.|
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- Kenneth A. Lewis & Laurence S. Seidman, 2011. "Did the 2008 rebate fail? a response to Taylor and Feldstein," Journal of Post Keynesian Economics, M.E. Sharpe, Inc., vol. 34(2), pages 183-204, January.
- Laurence Seidman, 2001. "Reviving Fiscal Policy," Challenge, M.E. Sharpe, Inc., vol. 44(3), pages 17-42, May.
- Seidman Laurence, 2010. "Reducing Future Deficits While Stimulating Today's Economy," The Economists' Voice, De Gruyter, vol. 7(3), pages 1-5, August.
- Nicholas S. Souleles & Jonathan A. Parker & David S. Johnson, 2006.
"Household Expenditure and the Income Tax Rebates of 2001,"
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- David S. Johnson & Jonathan A. Parker & Nicholas S. Souleles, 2004. "Household Expenditure and the Income Tax Rebates of 2001," NBER Working Papers 10784, National Bureau of Economic Research, Inc.
- Laurence S Seidman & Kenneth A Lewis, 2009. "Does Fiscal Stimulus Cause Too Much Debt?," Business Economics, Palgrave Macmillan;National Association for Business Economics, vol. 44(4), pages 201-205, October.
- Laurence Seidman, 2011. "Great Depression II," Challenge, M.E. Sharpe, Inc., vol. 54(1), pages 32-53, January. Full references (including those not matched with items on IDEAS)