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Effects of Fiscal Stimulus in Structural Models, Michael Kumhof, Dirk Muir, Carlos de Resende, Jan in ‘t Veld, René Lalonde, Davide Furceri, Annabelle Mourougane, John Roberts, Stephen Snudden, Mathias Trabandt, Günter Coenen, Susanna Mursula, Christopher Erceg, Charles Freedman, Jesper Lindé, Werner Roeger, Douglas Laxton

The paper assesses, using seven structural models used heavily by policymaking institutions, the effectiveness of temporary fiscal stimulus. Models can, more easily than empirical studies, account for differences between fiscal instruments, for differences between structural characteristics of the economy, and for monetary-fiscal policy interactions. Findings are: (i) There is substantial agreement across models on the sizes of fiscal multipliers. (ii) The sizes of spending and targeted transfers multipliers are large. (iii) Fiscal policy is most effective if it has some persistence and if monetary policy accommodates it. (iv) The perception of permanent fiscal stimulus leads to significantly lower initial multipliers
Table Of Contents
Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. Fiscal Multipliers: Empirical and Model-Based Evidence; III. Multipliers, Instruments, and Models; A. Definition of Fiscal Multipliers; B. The Seven Fiscal Instruments; C. The Seven Structural Models; 1. Key Model Features; IV. Fiscal Multipliers for Temporary Stimulus; A. Introduction to Simulation Results; 1. United States: Effect of 1 Year of Fiscal Stimulus on Real GDP (Instrument: Government Investment)
Literary Form
non fiction
Description based upon print version of record
Physical Description
1 online resource (104 p.)
Specific Material Designation
Form Of Item

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