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Brookings Papers on Economic Activity· 2012Q1

Fiscal Policy in a Depressed Economy

J. Bradford DeLong, Lawrence H. Summers

Short summary

Expansionary fiscal policy is likely self-financing and beneficial in depressed economies at the zero lower bound, even with modest hysteresis, suggesting caution on fiscal consolidation.

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Field: General Economics, Econometrics and Finance

General Economics, Econometrics and FinanceEconomics, Econometrics and Finance