multiplier. It presents a New Open Economy Macroeconomics model which is extended with the formation of 'deep habits' by … producers to move their markups counter-cyclically and generates a positive fiscal multiplier of private consumption. The main … outcome is a mechanism elaborating that both openness to trade and exchange rate exibility limit the fiscal multiplier in …

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 …

measures emphasize that government spending can stimulate additional private spending - the Keynesian multiplier effect. Thus …