Monday, February 22, 2010

Robert Barro on Fiscal Stimulus

Take a look at the wsj collumn by Robert Barro (here).  We are pretty much in agreement on the effects of fiscal stimulus, although I think his use of war spending provides a substantial upward bias to the spending multiplier. 


Secret Economist said...

I thought this was a nice list “50 Best Twitter Feeds to Follow the Economy” at

NorthGG said...

With all this focus on the deficit fuelled economy; just how much contraction can we expect to get the Federal budget deficit back under 3% of GDP on a trend basis if the private sector doesn't pick back up? Is the multilpier greater when cutting the deficit?

Many thanks.