 Overall ConclusionsChapter Chapter 30 in Why Fiscal Stimulus Programs Fail, Volume 1, 2021, pp 569-571 from Springer Abstract: Abstract This chapter provides a summary of key findings of tests undertaken in the book. The key scientific findings are than when tax cut and government spending fiscal stimulus programs are deficit financed, the positive stimulus effects are offset reductions in consumer and business ability to borrow money, which reduces their spending. The science also shows than increases in loanable funds at the same time deficits are incurred, can offset the crowd out problem, leaving fiscal stimulus programs having their originally intended positive effect. The policy analysis part of the book concludes that although accommodative monetary policy can increase loanable funds, the increase in securities purchases required by the Federal Reserve to do so was never large enough until the advent of the quantitative easing program in 2008–2009. The policy analysis part of the book also concludes it usefulness was limited due to reliance on investment banks and foreign banks rather than domestic commercial and savings banks. Keywords: Deficits; Government finance; Crowd out; Loanable funds fiscal policy; Accommodative monetary policy; Quantitative easing (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:spr:sprchp:978-3-030-65675-1_30 Ordering information: This item can be ordered from DOI: 10.1007/978-3-030-65675-1_30 Access Statistics for this chapter More chapters in Springer Books from Springer |
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