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Are Government Spending Multipliers Greater During Periodsof Slack? Evidence from 20th Century Historical Data

Posted By Guest Author On February 1, 2013 @ 6:00 am In Think Tank | Comments Disabled

A St. Louis Fed working paper examines whether government spending multipliers are greater during periods of high unemployment. “We find no evidence that multipliers are greater during periods of high unemployment in the U.S. We do find some evidence of higher multipliers during periods of slack in Canada, with some multipliers above unity.”

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