Recent Studies from Federal Reserve Bank Add New Data to Economics and Statistics (Fiscal Multipliers and Financial Crises): Economics – Economics and Statistics

2024 JUL 26 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- New research on Economics - Economics and Statistics is the subject of a report. According to news reporting out of St. Louis, France, by NewsRx editors, the research stated, “I study the effects of the U.S. fiscal policy response to the Great Recession, accounting for both standard tools and financial sector interventions.”

Our news journalists obtained a quote from the research from Federal Reserve Bank, “A nonlinear model calibrated to the United States allows me to study the state-dependent effects of different fiscal policies. I combine the model with data on the fiscal policy response to find that the fall in consumption would have been one-third larger in the absence of that response, for a cumulative loss of 7.18%.”

According to the news editors, the research concluded: “Transfers and bank recapitalizations yielded the largest fiscal multipliers through new transmission channels that arise from linkages between household and bank balance sheets.”

This research has been peer-reviewed.

For more information on this research see: Fiscal Multipliers and Financial Crises. Review of Economics and Statistics, 2024;106(3):728-747. Review of Economics and Statistics can be contacted at: Mit Press, One Rogers St, Cambridge, MA 02142-1209, USA.

Our news journalists report that additional information may be obtained by contacting Miguel Faria-e-Castro, Federal Reserve Bank, St. Louis, France.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1162/rest_a_01163. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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