What Do We Know About the Macroeconomic Effects of Fiscal Policy? A Brief Survey of the Literature on Fiscal Multipliers

25 Pages Posted: 21 Feb 2019

See all articles by Efrem Castelnuovo

Efrem Castelnuovo

University of Melbourne - Department of Economics

Guay C. Lim

University of Melbourne - Melbourne Institute of Applied Economic and Social Research

Multiple version iconThere are 3 versions of this paper

Date Written: 2018

Abstract

This article reviews recent research findings on the effects of fiscal multipliers in normal times, during booms/busts, and in the presence of the zero lower bound. Studies on the effects of fiscal policy in open economy settings as well as contributions on the fiscal-monetary policy mix are also considered. We conclude by outlining a few research avenues that are particularly relevant from a policy standpoint.

Keywords: fiscal multipliers, business cycle, fiscal spending taxes, monetary policy

JEL Classification: E300

Suggested Citation

Castelnuovo, Efrem and Lim, Guay C., What Do We Know About the Macroeconomic Effects of Fiscal Policy? A Brief Survey of the Literature on Fiscal Multipliers (2018). CESifo Working Paper No. 7366. Available at SSRN: https://ssrn.com/abstract=3338695

Efrem Castelnuovo (Contact Author)

University of Melbourne - Department of Economics ( email )

Melbourne, 3010
Australia

HOME PAGE: http://https://sites.google.com/site/efremcastelnuovo/home

Guay C. Lim

University of Melbourne - Melbourne Institute of Applied Economic and Social Research ( email )

Level 5, FBE Building, 111 Barry Street
161 Barry Street
Carlton, VIC 3053
Australia

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