Briefing

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;

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Bibliographic Information

Provider: Federal Reserve Bank of Richmond

Part of Series: Richmond Fed Economic Brief

Publication Date: 2009

Issue: Aug

Order Number: 09-08