Explore how the crowding-out and multiplier effects impact government stimulus spending. Learn which theory better stimulates ...

Learn how the marginal propensity to save (MPS) impacts economic decisions and calculations. Discover its role in Keynesian economics and how to calculate MPS effectively.

Empirical (employing the Blanchard-Perotti framework) and modeling (using a country-specific DSGE model) approaches are used to estimate fiscal multipliers by policy instrument for Bolivia, to ...

Download PDF More Formats on IMF eLibrary Order a Print Copy Create Citation The theoretical literature generally finds that government spending multipliers are bigger than unity in a low interest ...

Public spending is too often justified on the basis of creation of jobs. And more often than not - there will be a reference to some number of jobs to be created. This number represents the 'new' ...

When appearing before their political masters, central bankers, invariably, urge them to adopt an expansionary fiscal policy. Ben Bernanke, and now his successor, Janet Yellen have pleaded with ...