Fiscal Policy -- Recent Papers and Themes

A short paper. Click here Based on a novel, quarterly data set for 45 countries, we use VAR analysis (following the identifying assumption in Blanchard and Perotti (2002)) to compute fiscal multipliers for different group of countries.� We find that: (i) multipliers are much more persistent in high income than in emerging countries; (ii) fiscal multipliers are large under predetermined exchange rates but essentially zero under flexible exchange rates; (iii) fiscal multipliers are large for closed economies but essentially zero in open economies; (iv) multipliers are larger in low-debt than in high-debt countries and (v) multipliers for the United States in the post-1980 period are rather small, but multipliers for government investment are large.

A short paper. Click here Based on a novel, quarterly data set for 45 countries, we use VAR analysis (following the identifying assumption in Blanchard and Perotti (2002)) to compute fiscal multipliers for different group of countries.� We find that: (i) multipliers are much more persistent in high income than in emerging countries; (ii) fiscal multipliers are large under predetermined exchange rates but essentially zero under flexible exchange rates; (iii) fiscal multipliers are large for closed economies but essentially zero in open economies; (iv) multipliers are larger in low-debt than in high-debt countries and (v) multipliers for the United States in the post-1980 period are rather small, but multipliers for government investment are large.