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

16 Pages Posted: 6 Mar 2019

See all articles by Efrem Castelnuovo

Efrem Castelnuovo

University of Melbourne - Department of Economics

Guay Lim

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

Multiple version iconThere are 3 versions of this paper

Date Written: March 2019

Abstract

This article discusses recent research on the macroeconomic effects of fiscal policy—the theme of the 2018 edition of the Melbourne Institute Macroeconomic Policy Meeting. We review 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.

Suggested Citation

Castelnuovo, Efrem and Lim, Guay, What Do We Know About the Macroeconomic Effects of Fiscal Policy? A Brief Survey of the Literature on Fiscal Multipliers (March 2019). Australian Economic Review, Vol. 52, Issue 1, pp. 78-93, 2019. Available at SSRN: https://ssrn.com/abstract=3345270 or http://dx.doi.org/10.1111/1467-8462.12313

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 Lim

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

Level 5, FBE Building, 111 Barry Street
Parkville, Victoria 3010
Australia

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