Why Do Economists Still Disagree over Government Spending Multipliers?
Economic Commentary, 2014, issue May
Public debate about the effects of government spending heated up after record-large stimulus packages were enacted to address the fallout of the fi nancial crisis. Almost as noticeable as the discord was the absence of consensus among prominent economists on the issue. While it seems a simple problem to estimate the effect of government spending on output?the size of the government multiplier?it is anything but.
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