Expansionary Austerity New International Evidence

摘要: This paper investigates the short-term effects of fiscal consolidation on economic activity in OECD economies. We examine historical record, including Budget Speeches and IMFdocuments, to identify changes policy motivated by a desire reduce budget deficit not responding prospective conditions. Using this new dataset, our estimates suggest has contractionary private domestic demand GDP. By contrast, based conventional measures stance used literature support expansionary contractions hypothesis but appear be biased toward overstating effects.