MEZA, FELIPE - In: Journal of Money, Credit and Banking 40 (2008) 6, pp. 1239-1261
propose a simple mechanism to partially account for the contraction: the effects of changes in fiscal policy. The contraction … of GDP was preceded by a financial crisis. The government responded by raising taxes and reducing spending. Using a model … policy. Fiscal policy accounts for 20.7% of the fall in output. Copyright (c) 2008 The Ohio State University. …