Multiplier of spending cuts bigger than fiscal expansions, paper argues

Federal Reserve Bank of Richmond
Federal Reserve Bank of Richmond

The multiplier effect of public spending cuts is bigger than that of government stimulus, a paper released by the Federal Reserve Bank of Richmond says, and austerity seems to reach its most effective phase during a recession.

Are the effects of fiscal policy asymmetric? by Regis Barnichon, Christian Matthes and David Price, argues that the impact of fiscal shocks vary with the direction of the fiscal action and stage of the economic cycle.

The research finds cuts in government spending record

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

.