Government Size and Output Volatility: Should We Forsake Automatic Stabilization? PDF Download

Are you looking for read ebook online? Search for your book and save it on your Kindle device, PC, phones or tablets. Download Government Size and Output Volatility: Should We Forsake Automatic Stabilization? PDF full book. Access full book title Government Size and Output Volatility: Should We Forsake Automatic Stabilization? by Xavier Debrun. Download full books in PDF and EPUB format.

Government Size and Output Volatility: Should We Forsake Automatic Stabilization?

Government Size and Output Volatility: Should We Forsake Automatic Stabilization? PDF Author: Xavier Debrun
Publisher: INTERNATIONAL MONETARY FUND
ISBN: 9781451869828
Category : Economic development
Languages : en
Pages : 53

Get Book Here

Book Description
The paper takes stock of the debate on the positive link between output volatility and the size of government-which reflects automatic stabilizers. After a survey of the literature, we show that the contribution of automatic stabilizers to output stability may have disappeared since the 1990s. However, econometric analysis suggests that the breakdown in the government size-volatility relationship largely reflects temporary developments (better monetary management and financial intermediation). Once these factors are taken into account, the stabilizing role of government size remains important although little extra stability can be gained by expanding public expenditure beyond 40 percent of GDP.