Journal Article

The Macroeconomic Effects of the 2018 Bipartisan Budget Act


Abstract: The 2018 Bipartisan Budget Act raised government spending caps by $300 billion for fiscal years 2018 and 2019. While spending does not increase immediately, private sector investment and consumption may respond ahead of an anticipated fiscal stimulus. This Economic Perspectives article assesses the strength of this mechanism based on the private sector?s expectations.

Keywords: Budget; Vector autoregression;

Access Documents

File(s): File format is application/pdf https://www.chicagofed.org/~/media/publications/economic-perspectives/2019/ep2019-2-pdf.pdf
Description: Full text

Authors

Bibliographic Information

Provider: Federal Reserve Bank of Chicago

Part of Series: Economic Perspectives

Publication Date: 2019

Issue: 2

Pages: 2-12