The Case for Global Fiscal Stimulus by Jaewoo Lee, Douglas Laxton & Michael Kumhof

The Case for Global Fiscal Stimulus

By Jaewoo Lee, Douglas Laxton & Michael Kumhof

  • Publication Date: 2009-03-06
  • Genre: Business & Personal Finance

Book Summary

This paper highlights that worldwide expansionary fiscal policy combined with accommodative monetary policy can have significant multiplier effects on the world economy. It also provides a framework for assessing the effects of fiscal actions needed. The IMF emphasizes the role of public sector authorities in preventing a collapse of confidence in the private sector that might lead to a vicious downward spiral. The IMF also calls for fiscal stimulus in as many countries as possible, including emerging market and advanced economies.

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