Context relevant estimates suggest larger, not smaller, fiscal multipliers.
Category Archives: multipliers
Guest Contribution: “Monetary Alchemy, Fiscal Science”
Today, we’re very fortunate to have as a guest contributor Jeffrey Frankel, Harpel Professor at Harvard’s Kennedy School of Government, and formerly a member of the White House Council of Economic Advisers. His weblog can be found here.
The Macroeconomic Task Ahead
Confusion in the Anti-Keynesian Ranks
Some people think that if one takes into account intertemporal dynamics, policy must necessarily be ineffective
Heritage at the Cutting Edge
The Heritage Foundation’s blog criticizes my recent post thusly:
[Chinn] ignores the fact that Heritage Foundation economists, like most academic macroeconomists, have put away the old Keynesian model in favor of modern alternatives.
I thought it useful to see some of this advanced analysis in action at Heritage. From Heritage Foundation’s Ron Utt — admittedly a long time ago (2008!):
Going over the fiscal cliff
The “fiscal cliff” refers to a broad set of tax increases and spending cuts that under current U.S. law will take effect in January. A recent assessment by Bank of America Merrill Lynch estimates the tax increases in 2012 could come to $470 B and spending cuts another $250 B, for a combined fiscal shock of $720 B, or 4.6% of GDP.
Economic Effects of Hurricane Sandy
As the eastern U.S. tries to dig out from under the devastation, I thought it might be useful to comment on the economic consequences that a storm like this could have.
We Can Emulate the UK (GDP-wise)!
Or, still no expansionary fiscal contraction in the UK (surprise!)
The UK experiment [0] continues, apparently not too successfully, according to statistics from the UK Office of National Statistics. One picture suffices.
The fiscal cliff and rationality
What should happen, what could happen, and what will happen?
Contractionary Fiscal Contraction Is Even More Contractionary
Once one takes into account spillover effects, which are likely to be large in the Eurozone