Expansionary Contractions and Fiscal Free Lunches: Too Good To Be True?
This paper builds a framework to jointly examine the possibilities of both expansionary fiscal contractions (austerity increasing output) and fiscal free lunches (expansions reducing government debt), arguments which in recent debates have been supported by the austerity and stimulus camps, respecti...
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| Veröffentlicht in: | The Scandinavian journal of economics 2019-01, Vol.121 (1), p.32-54 |
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| container_title | The Scandinavian journal of economics |
| container_volume | 121 |
| creator | McManus, Richard Ozkan, Gulcin Trzeciakiewicz, Dawid |
| description | This paper builds a framework to jointly examine the possibilities of both expansionary fiscal contractions (austerity increasing output) and fiscal free lunches (expansions reducing government debt), arguments which in recent debates have been supported by the austerity and stimulus camps, respectively. We propose a new metric quantifying the budgetary implications of fiscal action, a key aspect of fiscal policy particularly at the monetary zero lower bound. We find that austerity needs to be highly persistent and credible in order to be expansionary, and stimulus needs to be temporary, responsive, and well-targeted in order to lower debt. We conclude that neither is likely, especially during periods of economic distress. |
| doi_str_mv | 10.1111/sjoe.12269 |
| format | Article |
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We conclude that neither is likely, especially during periods of economic distress.</description><subject>Austerity policy</subject><subject>Austerity versus stimulus</subject><subject>Camps</subject><subject>Economic models</subject><subject>Fiscal policy</subject><subject>Lunches</subject><subject>Psychological distress</subject><subject>Public debt</subject><subject>Stimulus</subject><subject>zero lower bound</subject><issn>0347-0520</issn><issn>1467-9442</issn><fulltext>true</fulltext><rsrctype>article</rsrctype><creationdate>2019</creationdate><recordtype>article</recordtype><sourceid>7TQ</sourceid><recordid>eNp9kM9LwzAUx4MoOKcX70LAm9CZvKRt6kV0bFMZeLD3kKYJtsxmJi26_97Mqkff5b0Hn-_78UXonJIZjXEdWmdmFCArDtCE8ixPCs7hEE0I43lCUiDH6CSElhCSMkInaLX43KouNK5Tfofnruu90n1sA1ZdjZdN0GqDl94YvB46_WrCDS6dwyvn6ljge4NLP5jbU3Rk1SaYs588ReVyUc4fkvXz6nF-t040K6BIUgALNePcxgOqShXUUEtrBlpboiubQyq0YrUASGlmKwuiAkK1ZRZyodgUXY5jt969Dyb0snWD7-JGCTQnIhO5yCJ1NVLauxC8sXLrm7f4oKRE7n2Se5_kt08RpiP80WzM7h9Svjw9L341F6OmDb3zfxqeUsKitewL-DFyyw</recordid><startdate>20190101</startdate><enddate>20190101</enddate><creator>McManus, Richard</creator><creator>Ozkan, Gulcin</creator><creator>Trzeciakiewicz, Dawid</creator><general>John Wiley & Sons Ltd</general><general>Blackwell Publishing Ltd</general><scope>AAYXX</scope><scope>CITATION</scope><scope>7TQ</scope><scope>8BJ</scope><scope>DHY</scope><scope>DON</scope><scope>FQK</scope><scope>JBE</scope></search><sort><creationdate>20190101</creationdate><title>Expansionary Contractions and Fiscal Free Lunches: Too Good To Be True?</title><author>McManus, Richard ; Ozkan, Gulcin ; Trzeciakiewicz, Dawid</author></sort><facets><frbrtype>5</frbrtype><frbrgroupid>cdi_FETCH-LOGICAL-c3929-522f2d344f005bba91e1f1d32ccf0cbf7258ca3d822516fbf28b201cf3f278a3</frbrgroupid><rsrctype>articles</rsrctype><prefilter>articles</prefilter><language>eng</language><creationdate>2019</creationdate><topic>Austerity policy</topic><topic>Austerity versus stimulus</topic><topic>Camps</topic><topic>Economic models</topic><topic>Fiscal policy</topic><topic>Lunches</topic><topic>Psychological distress</topic><topic>Public debt</topic><topic>Stimulus</topic><topic>zero lower bound</topic><toplevel>peer_reviewed</toplevel><toplevel>online_resources</toplevel><creatorcontrib>McManus, Richard</creatorcontrib><creatorcontrib>Ozkan, Gulcin</creatorcontrib><creatorcontrib>Trzeciakiewicz, Dawid</creatorcontrib><collection>CrossRef</collection><collection>PAIS Index</collection><collection>International Bibliography of the Social Sciences (IBSS)</collection><collection>PAIS International</collection><collection>PAIS International (Ovid)</collection><collection>International Bibliography of the Social Sciences</collection><collection>International Bibliography of the Social Sciences</collection><jtitle>The Scandinavian journal of economics</jtitle></facets><delivery><delcategory>Remote Search Resource</delcategory><fulltext>fulltext</fulltext></delivery><addata><au>McManus, Richard</au><au>Ozkan, Gulcin</au><au>Trzeciakiewicz, Dawid</au><format>journal</format><genre>article</genre><ristype>JOUR</ristype><atitle>Expansionary Contractions and Fiscal Free Lunches: Too Good To Be True?</atitle><jtitle>The Scandinavian journal of economics</jtitle><date>2019-01-01</date><risdate>2019</risdate><volume>121</volume><issue>1</issue><spage>32</spage><epage>54</epage><pages>32-54</pages><issn>0347-0520</issn><eissn>1467-9442</eissn><abstract>This paper builds a framework to jointly examine the possibilities of both expansionary fiscal contractions (austerity increasing output) and fiscal free lunches (expansions reducing government debt), arguments which in recent debates have been supported by the austerity and stimulus camps, respectively. 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| ispartof | The Scandinavian journal of economics, 2019-01, Vol.121 (1), p.32-54 |
| issn | 0347-0520 1467-9442 |
| language | eng |
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| source | PAIS Index; EBSCOhost Business Source Complete; Wiley Online Library All Journals |
| subjects | Austerity policy Austerity versus stimulus Camps Economic models Fiscal policy Lunches Psychological distress Public debt Stimulus zero lower bound |
| title | Expansionary Contractions and Fiscal Free Lunches: Too Good To Be True? |
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