Fiscal stimulus and the promise of future spending cuts: A comment

Arbeitspapier

Recent evaluations of the fiscal stimulus packages recently enacted in the United States and Europe such as Cogan, Cwik, Taylor and Wieland (2009) and Cwik and Wieland (2009) suggest that the GDP effects will be modest due to crowding-out of private consumption and investment. Corsetti, Meier and Mueller (2009a,b) argue that spending shocks are typically followed by consolidations with substantive spending cuts, which enhance the short-run stimulus effect. This note investigates the implications of this argument for the estimated impact of recent stimulus packages and the case for discretionary fiscal policy.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CFS Working Paper ; No. 2009/26

Classification and Topics

• Classification: Wirtschaft ; Multiple or Simultaneous Equation Models: Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models ; Information and Market Efficiency; Event Studies; Insider Trading ; Financial Forecasting and Simulation
• Subject: Fiscal Multiplier ; Fiscal Stimulus ; Discretionary Fiscal Policy ; New Keynesian Model ; Crowding-out ; Government Spending ; Macroeconomic Modelling ; Antizyklische Finanzpolitik ; Finanzpolitik ; Multiplikator ; Wirkungsanalyse ; Crowding out ; Ungleichgewichtstheorie ; Haushaltskonsolidierung ; Diskretionäre Politik ; Welt

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wieland, Volker
• Event: Veröffentlichung
• (who): Goethe University Frankfurt, Center for Financial Studies (CFS)
• (where): Frankfurt a. M.
• (when): 2009

Further information

• Handle: http://hdl.handle.net/10419/43215
• URN: urn:nbn:de:hebis:30-72751
• Last update: 10.03.2025, 11:41 AM CET