Answers are grounded in this paper and cite their sources.
As recently as two years ago there was a widespread consensus among economists that fiscal policy is not useful as a countercyclical instrument. Now governments in Washington and around the world are developing massive fiscal stimulus packages, supported by a wide range of economists in universities, governments, and businesses. Why has this change occurred? What are the principles for designing a potentially useful fiscal stimulus? And what will happen if the current fiscal stimulus fails?
No takes yet. Share an insight, caveat, or question.
Martin Feldstein (2009) studied this question.
Synapse has enriched 10 related papers. Consider them for comparative context: