NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

"Getting the Biggest Bang for the Buck in Fiscal Policy"

Miles S. Kimball

NBER Working Paper No. 18142
Issued in June 2012
NBER Program(s):   EFG   IFM   ME   PE

In ranking fiscal stimulus programs, it is useful to focus on the ratio of extra aggregate demand to extra national debt that results. This note argues that (because of repayment after the end of a recession) “national lines of credit”–that is, government-issued credit cards with countercyclical credit limits and favorable interest rates—would generate a higher ratio of extra aggregate demand to extra national debt than tax rebates. Because it involves government loans that are anticipated in advance to involve some losses and therefore involve a fiscal cost even after efforts to minimize losses, such a policy lies between traditional monetary policy and traditional fiscal policy.

You may purchase this paper on-line in .pdf format from SSRN.com ($5) for electronic delivery.

Information about Free Papers

You should expect a free download if you are a subscriber, a corporate associate of the NBER, a journalist, an employee of the U.S. federal government with a ".GOV" domain name, or a resident of nearly any developing country or transition economy.

If you usually get free papers at work/university but do not at home, you can either connect to your work VPN or proxy (if any) or elect to have a link to the paper emailed to your work email address below. The email address must be connected to a subscribing college, university, or other subscribing institution. Gmail and other free email addresses will not have access.

E-mail:

Acknowledgments

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w18142

Users who downloaded this paper also downloaded these:
Evans, Kotlikoff, and Phillips w17917 Game Over: Simulating Unsustainable Fiscal Policy
Parker w17240 On Measuring the Effects of Fiscal Policy in Recessions
Aizenman w18138 The Euro and the global crises: finding the balance between short term stabilization and forward looking reforms
Benhabib, Evans, and Honkapohja w18114 Liquidity Traps and Expectation Dynamics: Fiscal Stimulus or Fiscal Austerity?
Auerbach and Gorodnichenko w18578 Output Spillovers from Fiscal Policy
 
Publications
Activities
Meetings
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us