The Great Recession of 2008-9 has brought forth some intriguing claims about public policy and the nature of factor supply. Using “New Keynesian” models to guide the discussion, a number of economists ...

The scale and scope of government spending expansion in the last year are unprecedented. Because Uncle Sam doesn’t have the money, lots of it went on the government’s credit card. The deficit and debt ...

A key to designing fiscal policy is understanding how government purchases affect economic output overall. Research suggests that expanding government spending is not very effective at stimulating an ...

Prime Minister Narendra Modi has announced a ₹20 trillion stimulus package, which amounts to around 10% of India’s GDP. Prime Minister Narendra Modi at 8 pm on Tuesday announced a ₹20 trillion ...

This paper provides estimates of the government spending multiplier over the monetary policy cycle. We identify government spending shocks as forecast errors of the growth rate of government spending ...

Shawkat Hammoudeh is Professor of Economics and International Business at Drexel University. He can be reached at hammousm@drexel.edu. There is currently a debate raging among first-rate economists ...

This paper argues that an important, yet overlooked, determinant of the government spending multiplier is the direction of the fiscal intervention. Regardless of whether we identify government ...

Margaret Thatcher passed away Monday at age 87. Looking back, the UK economy had been limping along for years when she became Prime Minister in 1979. High inflation was problematic, and she attacked ...