Report

Fiscal Policy in Good Times and Bad

Tim Mahedy and Daniel J. Wilson

FRBSF, 2018

Get the Report

Read or listen offline

Amazon Kindle

automatisch generiertes Audio

1×

Melden Sie sich an, um die Audiozusammenfassung anzuhören.

automatisch generiertes Audio

Editorial Rating

Qualities

Analytical
Innovative
Overview

Recommendation

Typically, governments apply stimulus when an economy is in decline and then reverse course when conditions strengthen. But the 2017 US Tax Cuts and Jobs Act, implemented well into the eighth year of America’s expansion, seeks to boost and extend robust output. According to economists Tim Mahedy and Daniel J. Wilson in this brief but cogent analysis, evidence suggests such incentives are less effective during economic upswings than they are during downturns. getAbstract recommends this insightful research to economists and analysts.

Summary

Federal fiscal policy is a tool for controlling the primary deficit – the difference between government spending (minus debt service) and government revenue as a percentage of GDP. Traditionally, fiscal policies imposed to reverse a downward turn in economic activity are countercyclical. In a decline, the goal is to spend money to rouse the economy from its doldrums. The US government typically spends more during a downturn due to “automatic stabilizer programs” such as food stamps and unemployment benefits, as well as due to “discretionary” expenditures, and that increases...

About the Authors

Tim Mahedy is an economist at Bloomberg LP, and Daniel J. Wilson is an economist at the Federal Reserve Bank of San Francisco.

Fiscal Policy in Good Times and Bad

Read or listen offline

Editorial Rating

Qualities

Recommendation

Summary

About the Authors

My Highlights

Comment on this summary or Diskussion beginnen

More on this topic

By the same authors

Learners who read this summary also read

Related Channels