Fiscal response to crisis eased demand shock: Norges Bank paper


The fiscal policy response by some countries to the financial crisis has prevented a sharp drop in demand, according to a Norges Bank paper published on Wednesday.

Nina Larsson Midthjell, the paper's author, discusses the extent to which the fiscal policy measures implemented in response to the financial crisis have had the intended effects on the real economy.

Evidence shows the actual effects of a change in fiscal policy on the real economy are influenced by the choice of fiscal policy

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