Countercyclical Policy and the Speed of Recovery after Recessions

Neville Francis, Laura Jackson Young and Michael Owyang

Journal of Money, Credit and Banking, 2018, vol. 50, issue 4, 675-704

Abstract: We consider policies intended to accelerate recoveries by analyzing the duration of recoveries of U.S. states. Studying multiple recessions for a state and multiple states for a recession controls for differences in the economic conditions and the causes of recessions. Expansionary monetary policy at the national level helps to stimulate the exit of individual states from recession. Exogenous measures of decreases in taxes or targeted increases in federal spending reduce state recovery times, while ambient economic conditions (other states in the same region suffering from recession, the length of the preceding recession, and increases in oil prices) extend recovery times.

Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (13)

Downloads: (external link)
https://doi.org/10.1111/jmcb.12477

Related works:
Working Paper: Countercyclical policy and the speed of recovery after recessions (2013)
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: https://EconPapers.repec.org/RePEc:wly:jmoncb:v:50:y:2018:i:4:p:675-704

Access Statistics for this article

Journal of Money, Credit and Banking is currently edited by Robert deYoung, Paul Evans, Pok-Sang Lam and Kenneth D. West

More articles in Journal of Money, Credit and Banking from Blackwell Publishing
Bibliographic data for series maintained by Wiley Content Delivery ().