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Fiscal Stimulus (Cochrane)

Fiscal stimulus, fiscal inflation, or fiscal fallacies? by John H. Cochrane published by University of Chicago Booth School of Business (2/2009). “‘Fiscal stimulus’ is the proposition that by borrowing money and spending it, the government can raise the overrall state of the economy, raising output and lowering unemployment. Can it work? Do the arguments for it make any sense? If so, does the economy suffer from the ailments that fiscal stimulus can cure?”

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