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When does fiscal stimulus work?

Author

Listed:
  • Günter Coenen
  • Juha Kilponen
  • Mathias Trabandt

Abstract

Expansionary fiscal policies have been used extensively during the financial and economic crisis with the aim of boosting overall economic activity. Building on insights from structural macroeconomic models, this article highlights key factors that are important for successful fiscal stimulus programmes. JEL Classification: E12, E32, E52, E62

Suggested Citation

  • Günter Coenen & Juha Kilponen & Mathias Trabandt, 2010. "When does fiscal stimulus work?," Research Bulletin, European Central Bank, vol. 10, pages 6-10.
    • Handle: RePEc:ecb:ecbrbu:2010:0010:2
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    File URL: http://www.ecb.europa.eu/pub/pdf/other/researchbulletin10en.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Stähler, Nikolai & Thomas, Carlos, 2012. "FiMod — A DSGE model for fiscal policy simulations," Economic Modelling, Elsevier, vol. 29(2), pages 239-261.
    2. Nikolai Stähler, 2013. "Recent Developments In Quantitative Models Of Sovereign Default," Journal of Economic Surveys, Wiley Blackwell, vol. 27(4), pages 605-633, September.
    3. Vlasov, S. & Deryugina, E., 2018. "Fiscal Multipliers in Russia," Journal of the New Economic Association, New Economic Association, vol. 38(2), pages 104-119.
    4. Faia, Ester & Lechthaler, Wolfgang & Merkl, Christian, 2013. "Fiscal stimulus and labor market policies in Europe," Journal of Economic Dynamics and Control, Elsevier, vol. 37(3), pages 483-499.
    5. Yulida Safitri & Reni Diah Ningsih & Dwi Putri Agustianingsih & Vibhas Sukhwani & Akiko Kato & Rajib Shaw, 2021. "COVID-19 Impact on SDGs and the Fiscal Measures: Case of Indonesia," IJERPH, MDPI, vol. 18(6), pages 1-22, March.
    6. Sergey Vlasov, 2018. "Impact of the fiscal manoeuvre on GDP growth: estimation of short-term effects using fiscal multipliers," Bank of Russia Working Paper Series note17, Bank of Russia.

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    More about this item

    Keywords

    fiscal policy; fiscal multiplier; DSGE modelling;
    All these keywords.

    JEL classification:

    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E32 - Macroeconomics and Monetary Economics - - Prices, Business Fluctuations, and Cycles - - - Business Fluctuations; Cycles
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory

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