Is stimulative fiscal policy more effective at the zero lower bound?

Several recent research efforts have found that stimulative fiscal policy — government spending or tax cuts — can have unusual effects when nominal interest rates are as low as they are today. In particular, some studies have found that the government spending "multiplier" can be much larger at the zero lower bound. Despite these results, some caution is due when interpreting the size of the fiscal multiplier.

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Year of publication:	2011
Authors:	Haltom, Renee Courtois ; Sarte, Pierre-Daniel G.
Published in:	Richmond Fed Economic Brief. - Federal Reserve Bank of Richmond. - 2011, Aug, 11-8
Publisher:	Federal Reserve Bank of Richmond
Subject:	Business cycles \| Economic growth \| Monetary policy \| Fiscal policy

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Extent:	application/pdf text/html
Type of publication:	Article
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009321115