The Effects of Discretionary Fiscal Policy on Macroeconomic Aggregates: A Reappraisal
Journal of Economic Surveys, Forthcoming
23 Pages Posted: 1 Nov 2009 Last revised: 2 Nov 2010
Date Written: October 1, 2010
Fiscal stimuli to recover? A cascade of academic and layman-articles debate the effectiveness of fiscal policy in stimulating the economy backed up by different economic models and empirical support. This essay surveys the theoretical predictions and recent empirical Vector Autoregression (VAR) evidence on the short-run effects of discretionary fiscal policy on macroeconomic aggregates.
Keywords: Macroeconomic Policy, Fiscal policy
JEL Classification: E62, H30, H60
Suggested Citation: Suggested Citation