U.S. Fiscal Multipliers and the Next Recession

Source: Bernard Yaros, Sarah Crane, Regional Financial Review, Vol. 29 no. 6, February 2019
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The purpose of this article is to serve as a primer on U.S. fiscal multipliers in times of recession. We discuss the economic policies that Congress typically authorizes during a downturn and size them up against one another based on their multipliers. We analyze the impact on the economy of more government aid to states and localities, unemployment insurance benefits, food stamps, infrastructure, and various tax cuts.