As recently as two years ago there was a widespread consensus among economists that fiscal policy is not useful as a countercyclical instrument. Now governments in Washington and around the world are developing massive fiscal stimulus packages, supported by a wide range of economists in universities, governments, and businesses.
Why has this change occurred? What are the principles for designing a potentially useful fiscal stimulus? And what will happen if the current fiscal stimulus fails?
Published: Martin Feldstein, 2009.
"Rethinking the Role of Fiscal Policy,"
American Economic Review,
American Economic Association, vol. 99(2), pages 556-59, May.
This paper is available as PDF (79 K) or via email.
Acknowledgments
Machine-readable bibliographic record -
MARC,
RIS,
BibTeX
