We calculate the magnitude of the government consumption multiplier in linearized and nonlinear solutions of a New … that the nonlinear solution is associated with a much smaller multiplier than the linearized solution in long …

estimated stimulus is extremely small with GDP and employment effects only onesixth as large. -- Fiscal multiplier ; New …

-run multipliers around 0.52 and modestly negative long-run multipliers around -0.42. The multiplier is sensitive to the fraction of …. -- Fiscal Stimulus ; New Keynesian model ; liquidity trap ; zero lower bound ; fiscal multiplier … modestly negative long-run multipliers around -0.42. The multiplier is sensitive to the fraction of transfers given to credit …