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Fiscal Policy and Economic Activity During Recessions in Advanced Economies
Author:
Mr. Axel Schimmelpfennig
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Ms. Selma Mahfouznull

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Mr. Richard Hemming
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Series:
IMF Working Papers
Volume/Issue:
Volume 2002: Issue 087
Language:
English
Publication Date:
01 May 2002
DOI:
https://doi.org/10.5089/9781451851038.001
ISBN:
9781451851038
ISSN:
1018-5941
Pages:
24
Keywords:
WP; recession; recession episode; depth of recession; contraction; Recessions; fiscal response; economic activity; fiscal multipliers; fiscal policy implementation; recession equation; recession observation; fiscal policy response; Fiscal stimulus; Fiscal stance; Automatic stabilizers; Europe; Global
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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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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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund
Volume 2002: Issue 087