What determines government spending multipliers?

A major issue in current policy debates is the possible impact of fiscal tightening on output and other economic variables. In a recent research paper Giancarlo Corsetti, André Meier and Gernot J. Müller studied if the fiscal multiplier varies with the economic environment. Using a panel of OECD countries, they identify fiscal shocks as residuals from an estimated spending rule and trace their macroeconomic impact under different conditions regarding the exchange rate regime, public indebtedness, and health of the financial system. Their findings suggest that standard estimates of average fiscal multipliers mask substantial differences across economic environments.

Speakers

• Giancarlo Corsetti, Cambridge University and CEPR
• Rafael Wouters, Adviser to the Research Department at the National Bank of Belgium
• Jean Pisani-Ferry, Director of Bruegel

Event materials

• Giancarlo Corsetti, André Meier, Gernot J. Müller - What Determines Government Spending Multipliers? (research paper) here
• Giancarlo Corsetti, presentation here
• Rafael Wouters, presentation here
• Event summary here

Practical information

• Venue: Bruegel, Rue de la Charité 33, 1210 Bruxelles
• Time: 22 June 2012, 12:45 - 14:30
• Contact: [email protected]