Supermultiplier growth models show that higher autonomous spending leads to stronger economic growth, implying that greater government spending can boost economic activity (Freitas and Serrano, 2015). However, several authors highlighted the limits of this strategy, arguing that increased...

Supermultiplier growth models show that higher autonomous spending leads to stronger economic growth, implying that greater government spending can boost economic activity (Freitas and Serrano, 2015). However, several authors highlighted the limits of this strategy, arguing that increased...

In this paper we examine how the balance-of-payments constraint can limit output and income distribution in a small economy open to both commercial and financial flows, as well as constrain fiscal and monetary policies. We do so by extending a Sraffian supermultiplier growth model to consider...