Fiscal 'stimulus': A loanable funds critique

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Title Fiscal 'stimulus': A loanable funds critique
Author Makin, Anthony John
Journal Name Agenda
Year Published 2009
Place of publication Australia
Publisher Australian National University
Abstract This paper proposes an extended loanable-funds framework for examining the effects of fiscal stimulus on the budget balance, international borrowing, real interest rates, private saving, private investment and national income. It challenges the prevailing view that fiscal policy can be used effectively as an income 'stimulus' instrument, and proposes that discretionary fiscal measures that increase the budget deficit entail macroeconomic costs for significant external borrower economies, such as Australia, New Zealand and the United States.
Peer Reviewed Yes
Published Yes
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Copyright Statement Copyright remains with the author 2009. The attached file is reproduced here in accordance with the copyright policy of the publisher. For information about this journal please refer to the journal's website or contact the author.
Volume 16
Issue Number 4
Page from 25
Page to 34
ISSN 1322-1833
Date Accessioned 2009-12-23
Language en_AU
Faculty Griffith Business School
Subject Macroeconomic Theory
Publication Type Journal Articles (Refereed Article)
Publication Type Code c1

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