Arbeitspapier
Reorienting fiscal policy after the great recession
The paper evaluates the fiscal policy initiatives during the Great Recession in the United States. It argues that, although the nonconventional fiscal policies targeted at the financial sector dwarfed the conventional countercyclical stabilization efforts directed toward the real sector, the relatively disappointing impact on employment was a result of misdirected funding priorities combined with an exclusive and ill-advised focus on the output gap rather than on the employment gap. The paper argues further that conventional pump-priming policies are incapable of closing this employment gap. In order to tackle the formidable labor market challenges observed in the United States over the last few decades, policy could benefit from a fundamental reorientation away from trickle-down Keynesianism and toward what is termed here a bottom-up approach to fiscal policy. This approach also reconsiders the nature of countercyclical government stabilizers.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. 719
- Classification
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Wirtschaft
Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
Aggregate Factor Income Distribution
Policy Objectives; Policy Designs and Consistency; Policy Coordination
Fiscal Policy
Studies of Particular Policy Episodes
Particular Labor Markets: Public Policy
- Subject
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Fiscal Policy
American Recovery and Reinvestment Act of 2009
Trickle-Down Keynesianism
Countercyclical Employment Policy
- Event
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Geistige Schöpfung
- (who)
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Tcherneva, Pavlina R.
- Event
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Veröffentlichung
- (who)
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Levy Economics Institute of Bard College
- (where)
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Annandale-on-Hudson, NY
- (when)
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2012
- Handle
- Last update
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10.03.2025, 11:44 AM CET
Data provider
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Tcherneva, Pavlina R.
- Levy Economics Institute of Bard College
Time of origin
- 2012