Hjelm, Göran - In: Journal of Post Keynesian Economics 29 (2007) 2, pp. 327-358
In the past 10 to 15 years, it has been argued in the literature on "expansionary fiscal contraction" (EFC) that under certain circumstances, fiscal policy has non-Keynesian effects. We show that the real exchange rate depreciated substantially prior to fiscal contractions with a favorable...