International Spillover Effects of Fiscal Stimulus
Research by Auerbach and Gorodnichenko revealed that fiscal stimulus has international spillover effects. An autonomous increase in government spending in one country can impact the economies of its trading partners. The magnitude of these cross-border effects was found to be comparable to the indirect, secondary rounds of spending within the home country's own multiplier process.
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Introduction to Macroeconomics Course
Ch.5 Macroeconomic policy: Inflation and unemployment - The Economy 2.0 Macroeconomics @ CORE Econ
The Economy 2.0 Macroeconomics @ CORE Econ
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US Fiscal Multiplier Estimates by Economic State (Auerbach & Gorodnichenko, 2012)
International Spillover Effects of Fiscal Stimulus
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A government is considering a fiscal stimulus package. Match each economic scenario with the most likely resulting change in national output from a given increase in government spending.
Analyzing a Policy Debate on Fiscal Stimulus
Global Implications of Domestic Fiscal Policy
Empirical studies on the impact of fiscal policy suggest that an increase in government spending will have a significantly ____ effect on economic output when the economy is operating below its potential compared to when it is operating at or near full capacity.
Evaluating Competing Fiscal Policy Advice
Learn After
A large, open economy decides to increase its government spending by $100 billion to stimulate domestic growth. Based on empirical findings regarding the cross-border effects of such policies, what is the most probable impact on the economies of its major trading partners?
Evaluating Cross-Border Economic Policy Effects
According to empirical studies on cross-border economic effects, the impact of a country's fiscal stimulus on its trading partners is generally considered negligible compared to the secondary, indirect effects of the spending within the stimulating country's own economy.
Mechanism of International Fiscal Spillovers
Analyzing International Spillover Effects
Empirical research indicates that the magnitude of the economic impact a country's fiscal stimulus has on its trading partners is comparable to the secondary, indirect effects of the domestic ____ ____.
A government implements a large fiscal stimulus package by increasing spending on new public infrastructure. Match each resulting economic effect to its correct classification.
A large country initiates a significant fiscal stimulus by increasing its government spending. Arrange the following events to show the logical sequence through which this policy creates a 'spillover' effect on its trading partners.
Advising on International Economic Interdependence
Analyzing the Ripple Effects of a Domestic Stimulus