The effects of fiscal policy after the global recession: assessing the evidences
AUTOR(ES)
Paula, Luiz Fernando de, Pires, Manoel Carlos de Castro
FONTE
Brazil. J. Polit. Econ.
DATA DE PUBLICAÇÃO
2013-06
RESUMO
This paper offers a commented review of the most recent empirical studies of the effects of fiscal contraction on economic growth, which have helped underpin the prescription that fiscal policy should be expansionary in coming years in order to contain economic semi-stagnation in the developed countries. The paper shows that there is ample literature showing that fiscal expansion helps the economy grow, and that fiscal contraction tends to reduce output and employment in the short term.
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