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Fiscal Consolidation As a Self-Fulfilling Prophecy on Fiscal Multipliers
2015
Social Science Research Network
Fiscal policy may affect the size of the fiscal multiplier or lengthen the elevated multipliers period. This notion at first seems controversial, however it is only an outcome of combining two strands of already available literature together. The first strand touches the effects of fiscal policy on economic situation, the second one suggests economic situation affects fiscal multiplier. Having those two premises implies that fiscal policy could indirectly influence the fiscal multiplier size or
doi:10.2139/ssrn.2805867
fatcat:q4c3fottkbe3jjnxrklwezjg6a