Fiscal Policy: Not an Option

Dial, Michael
September 2010
Canadian Student Review;Fall2010, p4
The author examines the effectiveness of a fiscal policy in a large and developed economy with monetary independence. He presents the U.S. as example and the effect of the American Recovery and Reinvestment Act (ARRA) in a bid to jumpstart the U.S. economy. He cites the results of the research conducted by Harvard University economist Robert Barro, who claimed that the projected 1.5 multiplier effect by the administration of U.S. President Barack Obama was not met as the ARRA's multiplier effects did not exceed 0.8.


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