While Switzerland's recent growth of employment was high in historical and international perspective, the reasons for this "job miracle" were not well understood. As the "miracle" was not anticipated by economic forecasters, it consequently resulted in systematic and persistent forecast errors....

This paper asks whether the post-Keynesian or New Keynesian paradigm provides a more realistic description of the effects of fiscal policy on output and consumption. I establish some macro and microeconomic stylized facts on fiscal multipliers and marginal propensities to consume based on the...