Recent fiscal policy and the manipulation of aggregate economic activity
Abstract: It is widely believed that public sector spending and investment can restore aggregate economic activity to efficient levels. But some policy responses are likely to be more successful than others. In particular, directly targeting frictions in capital, labor, and insurance markets arguably provides the best chances of improving welfare.
Keywords: Fiscal policy;
File(s): File format is application/pdf http://www.richmondfed.org/publications/research/economic_brief/2009/pdf/eb_09-08.pdf
Provider: Federal Reserve Bank of Richmond
Part of Series: Richmond Fed Economic Brief
Publication Date: 2009
Order Number: 09-08