Does fiscal policy matter? Is there a better way to reduce unemployment?
Roger E. A. Farmer , Dmitry Plotnikov, 5 September 2011Can government spending help the economy recover from a recession by boosting job creation and lowering unemployment? Or is it a waste of money? This column addresses this question and others using a unique framework. It explains why fiscal policy was effective at ending the Great Depression but it argues that a big fiscal expansion may not be the best solution this time round.Full Article: Does fiscal policy matter? Is there a better way to reduce unemployment?