levels of public debt, thus limiting the ability of policymakers to fight the next recession. Whether new fiscal stimulus … borrowing, especially during periods of economic weakness. Indeed, fiscal stimulus in a weak economy can improve fiscal …

After the Global Financial Crisis a controversial rush to fiscal austerity followed in many countries. Yet research on … the effects of austerity on macroeconomic aggregates was and still is unsettled, mired by the difficulty of identifying … novel approach, we show that austerity is always a drag on growth, and especially so in depressed economies: a one percent …

countries, (ii) the fiscal multiplier is relatively large in economies operating under predetermined exchange rates but is zero …

debate on whether multipliers were higher on the stimulus spending in the U.S. and the fiscal consolidations in Europe …

substitution effects, yielding uniform comparisons across models. By constraining the multiplier to tight ranges, model and prior …

concept to account for the cross-country variation in the fiscal stimulus associated with the global crisis of 2009-2010. We …, and lower trade openness were associated with a higher fiscal stimulus/GDP during 2009-2010. Joint estimation indicates … that higher trade openness was associated with lower fiscal stimulus and higher depreciation rate during 2009-2010 …

(austerity). The key results are that deficit reduction policies based upon spending cuts are much less costly in terms of short …