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A Negative Fiscal Multiplier?
Lougheed, Alan L. (2001-08-01) A Negative Fiscal Multiplier?. Discussion Paper No 293, School of Economics, The University of Queensland.
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Downloads |
DP293Aug01.pdf
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DP293Aug01.pdf |
application/pdf |
245.05KB |
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| Author(s) |
Lougheed, Alan L.
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| Title |
A Negative Fiscal Multiplier?
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| School, Department or Centre |
School of Economics
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| Institution |
The University of Queensland
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| Report Number |
Discussion Paper No 293
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| Publication date |
2001-08-01
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| Subject |
340213 Economic Development and Growth
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| Abstract/Summary |
The so-called negative fiscal multiplier concept comes from the neo-classical free market economic philosophy and is found useful in arguing that fiscal stabilisation policy may
produce results contrary to those expected under Keynesian analysis in which the (positive) fiscal multiplier has traditionally been accepted as the norm. As a result, 'fiscal consolidation' (FC
hereafter), that is, the creation and maintenance of the classical balanced budget, ensures that fiscal policy cannot be used for stabilising the economy. Indeed, any attempt to do so will be
harmful. This idea has been advanced and research into its possible existence during the last twenty years has produced some encouraging results. This paper examines this research in further
detail.
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| Keyword(s) |
Multipliers
Free enterprise
Budget
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