6533b7d1fe1ef96bd125d7c0
RESEARCH PRODUCT
Effects of Fiscal Stimulus in Structural Models
Charles FreedmanCarlos De ResendeJesper LindéDavide FurceriJohn M. RobertsMichael KumhofStephen SnuddenAnnabelle MourouganeMathias TrabandtWerner RoegerDirk MuirRené LalondeChristopher J. ErcegDouglas LaxtonGünter CoenenJan In 'T VeldSusanna Mursulasubject
InflationWestern hemisphereStimulus (economics)media_common.quotation_subjectjel:E62Monetary policyMonetary economicsjel:E52jel:E12Fiscal policyjel:E13Economics Econometrics and Finance (all)2001 Economics Econometrics and Finance (miscellaneous)Empirical researchGeneral [Fiscal stimulus;Fiscal policy;Fiscal Multipliers Government Deficits inflation real interest rate aggregate demand Open Economy Macroeconomics International Policy Coordination and Transmission Fiscal Policies and Behavior of Economic Agents]PerceptionDynamic stochastic general equilibriumEconomicsGeneral Earth and Planetary SciencesReal interest rateGeneral Economics Econometrics and FinanceAggregate demandGeneral Environmental Sciencemedia_commondescription
The paper assesses, using seven structural models used heavily by policymaking institutions, the effectiveness of temporary fiscal stimulus. Models can, more easily than empirical studies, account for differences between fiscal instruments, for differences between structural characteristics of the economy, and for monetary-fiscal policy interactions. Findings are: (i) There is substantial agreement across models on the sizes of fiscal multipliers. (ii) The sizes of spending and targeted transfers multipliers are large. (iii) Fiscal policy is most effective if it has some persistence and if monetary policy accommodates it. (iv) The perception of permanent fiscal stimulus leads to significantly lower initial multipliers.
| year | journal | country | edition | language |
|---|---|---|---|---|
| 2010-01-01 |