Fiscal-policy models are flimsy

A paper by four academics including Stanford's John Taylor notes that renewed interest in fiscal policy has increased the use of quantitative models to evaluate policy, but cautions that these models are not robust.

Because the models are uncertain, it is essential that policy evaluations should be aware of alternative assumptions, the research states.

The research further notes that that government spending multipliers in an alternative new Keynesian model, which has been empirically estimated

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