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The Case for Global Fiscal Stimulus

Jaewoo Lee, Douglas Laxton, Michael Kumhof




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 | #4418552 in eBooks |  2009-03-06 |  2009-03-06 | File type: PDF

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This paper highlights that worldwide expansionary fiscal policy combined with accommodative monetary policy can have significant multiplier effects on the world economy. It also provides a framework for assessing the effects of fiscal actions needed. The IMF emphasizes the role of public sector authorities in preventing a collapse of confidence in the private sector that might lead to a vicious downward spiral. The IMF also calls for fiscal stimulus in as many countries ...

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