Government spend no more effective at ZLB – NBER paper

us-capitol
US Capitol

The power of US government spending to stimulate the economy remains roughly constant, even as slack in the economy varies and when monetary policy hits a zero lower bound (ZLB), research published by the National Bureau of Economic Research (NBER) has found.

Authors Valerie Ramey and Sarah Zubairy construct a new quarterly dataset running from 1889 to 2013 in their paper, Government Spending Multipliers in Good Times and Bad. Using a "local projection method", they find "no evidence" that the

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@centralbanking.com or view our subscription options here: http://subscriptions.centralbanking.com/subscribe

You are currently unable to copy this content. Please contact info@centralbanking.com to find out more.

Sorry, our subscription options are not loading right now

Please try again later. Get in touch with our customer services team if this issue persists.

New to Central Banking? View our subscription options

Register for Central Banking

All fields are mandatory unless otherwise highlighted

This address will be used to create your account

You need to sign in to use this feature. If you don’t have a Central Banking account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account

.