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measures emphasize that government spending can stimulate additional private spending the so-called Keynesian multiplier effect …, when stimulus is most needed, may even be negative. Traditional Keynesian multiplier effects only arise in a model that …
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measures emphasize that government spending can stimulate additional private spending - the Keynesian multiplier effect. Thus …
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measures emphasize that government spending can stimulate additional private spending — the Keynesian multiplier effect. Thus …
Persistent link: https://www.econbiz.de/10013136289
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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