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Why Fiscal Stimulus is Unlikely to Work *
Author(s) -
Hassett Kevin A.
Publication year - 2009
Publication title -
international finance
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.458
H-Index - 39
eISSN - 1468-2362
pISSN - 1367-0271
DOI - 10.1111/j.1468-2362.2009.01237.x
Subject(s) - economics , stimulus (psychology) , fiscal policy , macroeconomics , work (physics) , keynesian economics , monetary economics , psychology , physics , cognitive psychology , thermodynamics
This paper reviews the empirical literature on countercyclical policy. It finds that three types of countercyclical policies have been studied in the literature: built‐in stabilizers, temporary policy changes and more permanent policy changes. The literature is decidedly mixed on the effectiveness of temporary changes, but more hopeful concerning the other two.