Growth Forecast Errors and Fiscal Multipliers.

This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected. The relation is particularly strong, both statistica...

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Publicado en:American Economic Review Vol. 103; no. 3; pp. 117 - 121
Autores principales: Blanchard, Olivier J, Leigh, Daniel
Formato: Artículo
Publicado: American Economic Association May2013
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Growth Forecast Errors and Fiscal Multipliers.
      aug:
        au:
          Blanchard, Olivier J
          Leigh, Daniel
        affil:
          a1
          a2
      su:
        Financial crises
        Mathematical models of economic development
        Mathematical models of forecasting
        Statistical errors
        European Sovereign Debt Crisis, 2009-2018
        Austerity
        Estimation theory
      sug:
        subj:
          Financial crises
          Mathematical models of economic development
          Mathematical models of forecasting
          Statistical errors
          European Sovereign Debt Crisis, 2009-2018
          Austerity
          Estimation theory
      ab: This paper investigates the relation between growth forecast errors and planned fiscal consolidation during the crisis. We find that, in advanced economies, stronger planned fiscal consolidation has been associated with lower growth than expected. The relation is particularly strong, both statistically and economically, early in the crisis. A natural interpretation is that fiscal multipliers were substantially higher than implicitly assumed by forecasters. The weaker relation in more recent years may in part reflect learning by forecasters and in part smaller multipliers than in the early years of the crisis.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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