The IMF grabbed headlines and upset officials earlier this month
when it released an analysis which concluded that, starting in
2009, the fiscal policy multiplier has actually been
considerably larger than previously supposed (IMF 2012). Gauging
the multiplier: Lessons from history Barry Eichengreen, Kevin H
O’Rourke, 23 October 2012 What is the size of the multiplier? An
estimate one can’t refuse Giancarlo Corsetti, Saverio Simonelli,
Antonio Acconcia, 4 April 2011 How much more demand, output, and
employment can we expect from expansionary fiscal stimulus?
Conversely, how much macroeconomic pain can we expect from a
contraction dictated by the need to keep public debt on a
sustainable path? Measuring the output responses to fiscal
policy Alan J Auerbach, Yuriy Gorodnichenko, 3 September 2010
The effect of fiscal policy on output – and its components – has
long been a central part of fiscal policy analysis. And yet, as
has been made clear by the recent debate over the likely effects
of fiscal stimulus in the