Economics at your fingertips  

Appropriate Fiscal Policy over the Business Cycle: Proper Stimulus Policies Can Work

Philip Graves ()

The IUP Journal of Governance and Public Policy, 2011, vol. VI, issue 2, 26-32

Abstract: Fiscal policy has become quite controversial in the post-Keynesian era, the debate over the Obama stimulus package being a contentious recent example. Some pundits go so far as to take the position that macroeconomic theory has failed to meaningfully progress in terms of providing useful recommendations for policy-makers, particularly in times of recession. Others take the laissez-faire view that policy reactions to the business cycle do not help in a rational expectations world and indeed do harm by increasing uncertainty. Still others, while not necessarily viewing themselves as in any sense “Keynesian,” have a nagging feeling that sometimes doing nothing must be worse than doing something…but what to do? Sensible guidance is provided here on how governments should spend taxpayer dollars and on how that spending should change under varying economic conditions. The nature of public goods, namely whether they are complements, substitutes, or neutral to private goods, is seen to be critical to such decisions.

Date: 2011
References: Add references at CitEc
Citations: Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Working Paper: Appropriate Fiscal Policy over the Business Cycle: Proper Stimulus Policies Can Work (2010) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link:

Access Statistics for this article

More articles in The IUP Journal of Governance and Public Policy from IUP Publications
Bibliographic data for series maintained by G R K Murty ().

Page updated 2019-04-09
Handle: RePEc:icf:icfjgp:v:06:y:2011:i:2:p:26-32