Social Implications of Fiscal Policy Responses During Crises / Carlos A. Vegh, Guillermo Vuletin.

Format:

Book

Author/Creator:

Vegh, Carlos A.

Contributor:

National Bureau of Economic Research.

Vuletin, Guillermo.

Series:

Working Paper Series (National Bureau of Economic Research) no. w19828.

NBER working paper series no. w19828

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2014.

Summary:

This paper studies the social implications of fiscal policy responses to crises in Latin America over the last 40 years and in the Eurozone during the aftermath of the global financial crisis. We focus on the behavior of four social indicators: the poverty rate, income inequality, unemployment rate, and domestic conflict. We find a causal link from counteryclical (procyclical) fiscal policy responses to reductions (increases) in all four social indicators. These results call into question recent claims on "expansionary fiscal austerity."

Notes:

Print version record

January 2014.