Government Expenditure Mutiplier Revisited
Ganti Subrahmanyam
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Ganti Subrahmanyam: National Institute of Bank Management, Pune
Indian Economic Review, 1993, vol. 28, issue 2, 235-239
Abstract:
This note demonstrates that under certain plausible conditions, contrary to conventional belief, government expenditures may yield perverse multiplier effects. In a modified IS-LM framework changes in government expenditures unaccompanied by accommodating changes in money supply may not only yield the desired results but may, in fact, produce perverse results instead.
JEL-codes: E62 (search for similar items in EconPapers)
Date: 1993
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