Introduction

John Heim

Chapter Chapter 1 in Why Fiscal Stimulus Programs Fail, Volume 2, 2021, pp 3-12 from Springer

Abstract: Abstract This chapter provides an overview of how increases in loanable funds in banks can replace loanable funds typically borrowed by consumers or businesses, but lost to them when governments run budget deficits financed by borrowing these funds from the loanable funds pool. It shows that the necessary growth in loanable funds can occur exogenously, by Federal Reserve purchases of securities from banks (“accommodative monetary policy”) or endogenously by economic growth, which increases national savings. This chapter also provides a brief description of the topics cover in each chapter of the book.

Keywords: Accommodative Monetary Policy; Fiscal Stimulus; Crowd Out; Loanable Funds; Federal Reserve (search for similar items in EconPapers)
Date: 2021
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Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-64727-8_1

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DOI: 10.1007/978-3-030-64727-8_1

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