Effects of Fiscal Stimulus in Structural Models

Michael Kumhof (), Günter Coenen (), Dirk Muir, Charles Freedman, Susanna Mursula, Christopher Erceg, Davide Furceri (), René Lalonde, Jesper Lindé, Annabelle Mourougane (), John Roberts, Werner Roeger, Carlos de Resende, Stephen Snudden (), Mathias Trabandt (), Jan in 't Veld and Douglas Laxton ()

No 2010/073, IMF Working Papers from International Monetary Fund

Abstract: The paper assesses, using seven structural models used heavily by policymaking institutions, the effectiveness of temporary fiscal stimulus. Models can, more easily than empirical studies, account for differences between fiscal instruments, for differences between structural characteristics of the economy, and for monetary-fiscal policy interactions. Findings are: (i) There is substantial agreement across models on the sizes of fiscal multipliers. (ii) The sizes of spending and targeted transfers multipliers are large. (iii) Fiscal policy is most effective if it has some persistence and if monetary policy accommodates it. (iv) The perception of permanent fiscal stimulus leads to significantly lower initial multipliers.

Keywords: WP; consumption; inflation; GDP (search for similar items in EconPapers)
Pages: 121
Date: 2010-03-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (105) Track citations by RSS feed

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=23671 (application/pdf)
Our link check indicates that this URL is bad, the error code is: 403 Forbidden

Related works:
Journal Article: Effects of Fiscal Stimulus in Structural Models (2012)
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:imf:imfwpa:2010/073

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().