Global effects of fiscal stimulus during the crisis

A-Tier
Journal: Journal of Monetary Economics
Year: 2010
Volume: 57
Issue: 5
Pages: 506-526

Score contribution per author:

0.804 = (α=2.01 / 5 authors) × 2.0x A-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

The IMF's Global Integrated Monetary and Fiscal Model is used to compute short-run multipliers of fiscal stimulus measures and long-run crowding-out effects of higher debt. Multipliers of two-year stimulus range from 0.2 to 2.2 depending on the fiscal instrument, the extent of monetary accommodation and the presence of a financial accelerator mechanism. A permanent 10 percentage point increase in the US debt to GDP ratio raises the US tax burden and world real interest rates in the long run, thereby reducing US and rest of the world output by 0.3-0.6 percent and 0.2-0.3 percent, respectively.

Technical Details

RePEc Handle
repec:eee:moneco:v:57:y:2010:i:5:p:506-526
Journal Field
Macro
Author Count
5
Added to Database
2026-01-25