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Our Research Catalogue contains grants and outputs data up until April/May 2014.

New Directions in Monetary and Fiscal Policy Analysis at the Macroeconomic Level

Grant reference: RES-062-23-1436

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Journal article details

Lessons from failure : fiscal policy, indulgence and ideology
Macroeconomic theory clearly suggests that at the zero lower bound, fiscal contraction will reduce output and slow any recovery. Yet in 2010 the focus of fiscal policy in many countries switched from supporting activity to reducing debt, despite the fact that the recovery from recession often appeared weak. While high levels of public debt can explain this switch in some countries, it does not provide a satisfactory account in others. In addition, the possibility of using balanced budget fiscal expansion or tax switches that bring forward spending remain largely unexplored. This paper suggests that policy has been influenced by an opposition to countercyclical fiscal policy which has ideological roots.
10.1177/0027950111420919
English

Primary contributor

Author Simon Wren-Lewis

Additional details

217
1
Yes
0027-9501
SAGE Publications
01 July 2011
31-46
London
Post-print
National Institute economic review : journal of the National Institute of Economic and Social Research

Cite this outcome

Harvard

Wren-Lewis, Simon (2011) Lessons from failure : fiscal policy, indulgence and ideology. National Institute economic review : journal of the National Institute of Economic and Social Research. 217 (1), pp. 31-46 London: SAGE Publications.

Vancouver

Wren-Lewis Simon. Lessons from failure : fiscal policy, indulgence and ideology. National Institute economic review : journal of the National Institute of Economic and Social Research 2011; 217 (1): 31-46.