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
Date Written: 2018
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: Suggested Citation