The IMF Working Papers series is designed to make IMF staff research available to a wide audience. Almost 300 Working Papers are released each year, covering a wide range of theoretical and analytical topics, including balance of payments, monetary and fiscal issues, global liquidity, and national and international economic developments.
Axel Schimmelpfennig, Selma Mahfouz, and Richard Hemming
Publisher:
INTERNATIONAL MONETARY FUND
Published Date:
May 2002
DOI:
http://dx.doi.org/10.5089/9781451851038.001
ISBN:
9781451851038
ISSN:
1018-5941
Page:
24
Using data for advanced economies, this paper investigates whether factors identified in the theoretical and empirical literature explain the effectiveness of fiscal policy in responding to recessions. The results are informative about the fiscal response to recessions but provide only a partial explanation of the impact of fiscal policy on economic activity. Overall, it would appear that fiscal multipliers are very small.
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