Why Are Keynesian Multipliers Larger in Hard Times? A Palley-Aftalion-Pasinetti Explanation
Résumé
We use the AMECO database to confirm that textbook multipliers are nearly always greater
than one and that they increase during recessions. Propensity to import falls in recessions
through the combined effects of the amplified fall in investment (Aftalion) and the high
import content of investment (Palley). A change in saving behavior (Pasinetti) may also raise
the multiplier. These findings strongly support the need for countercyclical fiscal policies
during recessions.
Origine : Fichiers produits par l'(les) auteur(s)
Licence : CC BY - Paternité
Licence : CC BY - Paternité