Fiscal multipliers during the global financial crisis: Fiscal and monetary interaction matters

Ju Hyun Pyun, Dong-Eun Rhee

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

This study investigates the fiscal multipliers of 21 Organization for Economic Co-operation and Development countries during the global financial crisis using panel vector auto regression methodology. Our findings suggest that the 1-year fiscal multiplier was greater than 1 during the crisis, whereas it was less than 1 before the crisis because of different fiscal and monetary interactions. The combination of expansionary monetary and fiscal policies during the crisis boosted gross domestic product more effectively through internal and external transmissions: investment crowding-out was limited, and net exports were spurred by the policy interaction. In addition, our results are robust to various specifications. (JEL E61, E63, E65)

Original languageEnglish
Pages (from-to)207-220
Number of pages14
JournalContemporary Economic Policy
Volume33
Issue number1
DOIs
Publication statusPublished - 2015 Jan 1
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics
  • Public Administration
  • Business, Management and Accounting(all)

Fingerprint Dive into the research topics of 'Fiscal multipliers during the global financial crisis: Fiscal and monetary interaction matters'. Together they form a unique fingerprint.

  • Cite this