…reserves instead of 10%, that means you can lend $88 instead of $90 — not exactly the massive asphyxiation of the “money multiplier” that many people imagine. That multiplier is…

…have a big consequences through the multiplier effect – the government hires some construction companies to build a road, those companies in turn purchase material from third parties and hire…

…and shorter than it otherwise would have been. The problem with a confidence multiplier is, of course, that when the results do not match the expectations, the “multiplier” becomes a…

…(the time he asserted that the balanced budget multiplier is zero because without a deficit “there is nothing for the multiplier to multiply). 3) Solow to Katz that Harvard didn’t…

Robert Waldmann Robert Barro wrote an op-ed in The Wall Street Journal. The substance of the op-ed is to report an estimate of the Fiscal multiplier 0.8 which is less…

…“animal spirits”. So some Keynesians might argue that much of the volatility during business cycles comes from shifts of the investment function. But Keynes never argued that the multiplier from…

…is stuck in a depressed steady state? OK a very simple but new Keynesian type model follows. The conslusion is that permanent fiscal stimulus works fine with a multiplier greater…

…spending could simply be adjusted for inflation as well. But it isn’t that simple. Our little Keynesian story assumes a multiplier, but we’re not going to estimate that multiplier or…

…the jump OK so Lucas demonstrated that he had managed to erase IS-LM by asserting that Hicks found one and only one multiplier, therefore the balanced budget multiplier had to…

…to give an annual rate). Also I multiplied G by 1.5 which is a common estimate of the multiplier (say by Blanchard and Leigh or Nakamura and Steinsson). Here an…