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Who believes in fiscal and monetary stimulus? Evidence from a survey of Pennsylvania residents

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  • David Amdur

    (Muhlenberg College)

Abstract

Does the public believe that fiscal and monetary stimulus reduce unemployment? I present survey evidence on this question from a random sample of Pennsylvania residents. Few respondents express a consistently Keynesian view of fiscal or monetary stimulus. In fact, the typical respondent believes that an increase in government spending makes unemployment worse. Views on monetary stimulus depend on how the question is framed. The typical respondent believes that Fed money creation worsens unemployment while a Fed interest rate cut improves it. Beliefs about policy effectiveness fall largely, but not entirely, along partisan lines. The Democratic "tilt" towards government spending - in terms of its alleged positive employment effects - appears stronger than the Republican tilt towards tax cuts.

Suggested Citation

  • David Amdur, 2013. "Who believes in fiscal and monetary stimulus? Evidence from a survey of Pennsylvania residents," Economics Bulletin, AccessEcon, vol. 33(3), pages 2140-2155.
    • Handle: RePEc:ebl:ecbull:eb-13-00552
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    References listed on IDEAS

    as
    1. Antonio Spilimbergo & Steve Symansky & Olivier Blanchard & Carlo Cottarelli, 2009. "Fiscal Policy For The Crisis," CESifo Forum, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 10(02), pages 26-32, July.
    2. Stiglitz, Joseph, 2012. "Macroeconomics, Monetary Policy, and the Crisis," MIT Press Book Chapters, in: Blanchard, Olivier J. & Romer, David & Spence, Michael & Stiglitz, Joseph E. (ed.), In the Wake of the Crisis: Leading Economists Reassess Economic Policy, edition 1, volume 1, chapter 4, pages 31-42, The MIT Press.
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    5. repec:mtp:titles:026201761x-04 is not listed on IDEAS
    6. Author-Name: Alan S. Blinder & Alan B. Krueger, 2004. "What Does the Public Know about Economic Policy, and How Does It Know It?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 35(1), pages 327-397.
    7. Valerie A. Ramey, 2011. "Can Government Purchases Stimulate the Economy?," Journal of Economic Literature, American Economic Association, vol. 49(3), pages 673-685, September.
    8. Romer, David, 2012. "What Have We Learned about Fiscal Policy from the Crisis?," MIT Press Book Chapters, in: Blanchard, Olivier J. & Romer, David & Spence, Michael & Stiglitz, Joseph E. (ed.), In the Wake of the Crisis: Leading Economists Reassess Economic Policy, edition 1, volume 1, chapter 6, pages 57-66, The MIT Press.
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    More about this item

    Keywords

    Fiscal stimulus; monetary stimulus; unemployment; Keynesian economics; opinion survey;
    All these keywords.

    JEL classification:

    • E6 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook
    • H3 - Public Economics - - Fiscal Policies and Behavior of Economic Agents

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