Why Fiscal Stimulus is Unlikely to Work

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 o...

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Bibliographic Details
Published in:International finance (Oxford, England) England), 2009, Vol.12 (1), p.75-91
Main Author: Hassett, Kevin A.
Format: Article
Language:English
Subjects:
Business cycles
Economic policy
Economic recovery
Studies
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Summary: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.
ISSN:1367-0271
1468-2362
DOI:10.1111/j.1468-2362.2009.01237.x