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London Economics Debating Society Message Board › How big is the Keynesian multiplier?

How big is the Keynesian multiplier?

user 12139969
London, GB
Post #: 9
Inflation is one big issue for the economy. The other is whether more government spending could produce an upturn. Labour says it could. How big then is the Keynesian multiplier? Most of the politicians and pundits arguing about borrowing and spending one doubts would even know what the multiplier is in principle let alone give you a figure for it!

Robert Barro wrote in the NYT that it's zero for the US in peacetime.­

An IMF paper by Ilzetzki et al points out that you would think there was broad agreement underpinning stimulus packages but there is not. Many factors affect the multiplier.­

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