Economics at your fingertips  


Joshua Aizenman () and Gurnain Pasricha ()

Santa Cruz Department of Economics, Working Paper Series from Department of Economics, UC Santa Cruz

Abstract: This paper studies the patterns of fiscal stimuli in the OECD countries propagated by the global crisis.Overall, we find that the USA net fiscal stimulus was modest relative to peers, despite it being theepicenter of the crisis, and having access to relatively cheap funding of its twin deficits. The USAis ranked at the bottom third in terms of the rate of expansion of the consolidated government consumptionand investment of the 28 countries in sample. Contrary to historical experience, emerging marketshad strongly countercyclical policy during the period immediately preceding the Great Recession andthe Great Recession. Many developed OECD countries had procyclical fiscal policy stance in the sameperiods. Federal unions, emerging markets and countries with very high GDP growth during the pre-recessionperiod saw larger net fiscal stimulus on average than their counterparts. We also find that greater netfiscal stimulus was associated with lower flow costs of general government debt in the same or subsequentperiod.

Keywords: Social; and; Behavioral; Sciences (search for similar items in EconPapers)
Date: 2011-02-01
References: Add references at CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link);origin=repeccitec (application/pdf)

Related works:
Working Paper: Net Fiscal Stimulus During the Great Recession (2011) 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 paper

More papers in Santa Cruz Department of Economics, Working Paper Series from Department of Economics, UC Santa Cruz Contact information at EDIRC.
Bibliographic data for series maintained by Lisa Schiff ().

Page updated 2020-10-08
Handle: RePEc:cdl:ucscec:qt8df5z6j8