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The tests carried out by Blanchard and Leigh (2013; IMF, 2012) and Fátas and Summers (2018) are extended here into a panel framework in order to assess the empirical basis of the so-called IMF "mea culpa" regarding the underestimation of Keynesian multipliers during the euro area crisis. The...
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investment multiplier is likely to be much higher than what has been assumed by the policy makers and much higher that the … consumption multiplier. This points out that the consolidation should be accompanied by increased public investment …
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the European Commission's Spring Forecasts, we show that multiplier estimates in the EU have been overestimated in the …
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This paper evaluates the performance of Consensus Forecasts of GDP growth for industrialized and developing countries from 1989 to 1998. The questions addressed are (1) How do forecast errors differ across industrialized and developing countries? (2) How well do forecasters predict recessions?...
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