Arbeitspapier
Fiscal multipliers in recessions
The Great Recession, and the fiscal response to it, has revived interest in the size of fiscal multipliers. Standard business cycle models have difficulties generating multipliers greater than one. And they also fail to produce any significant asymmetry in the size of the multipliers over the business cycle. In this paper we employ a variant of the Curdia-Woodford model of costly financial intermediation to show that fiscal multipliers are strongly countercyclical. In particular, they can take values exceeding two during recessions, declining to values below one during expansions.
- Language
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Englisch
- Bibliographic citation
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Series: Discussion Papers ; No. 12-04
- Classification
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Wirtschaft
Business Fluctuations; Cycles
Fiscal Policy
- Subject
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Government Spending Multipliers
Cyclicality
Financial Frictions
Konjunktur
Antizyklische Finanzpolitik
Multiplikator
Geldpolitische Transmission
Neukeynesianische Makroökonomik
Konjunkturtheorie
- Event
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Geistige Schöpfung
- (who)
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Canzoneri, Matthew
Collard, Fabrice
Dellas, Harris
Diba, Behzad
- Event
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Veröffentlichung
- (who)
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University of Bern, Department of Economics
- (where)
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Bern
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Canzoneri, Matthew
- Collard, Fabrice
- Dellas, Harris
- Diba, Behzad
- University of Bern, Department of Economics
Time of origin
- 2012
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