Economic Effects of Sustained Budget Deficits

By William G. Gale, Peter R. Orszag. National tax journal, 2003

199 citations recorded by the source corpus.

How researchers see this paper

The researchers whose trusted networks rank it highest, strongest advocate first. Every researcher gets a different order.

The macroeconomic effects of fiscal policy (2012, background): “The effects on GDP are negative, reflecting the fall in both private consumption and private investment, and providing evidence of a ‘Non-Keynesian’ effect (see, for instance, Giavazzi and Pagano (1990, 1996), Giudice et al. (2004) and Afonso (2010)).”
Bond Yields in Emerging Economies: It Matters What State You are in (2012, unknown): “Gale and Orszag (2003) report that out of 59 studies, 29 find that weaker fiscal variables increase interest rates, while 11 had mixed results and 19 found that the effect was not significant.”
FISCAL POLICY AND ASSET PRICES (2013, unknown): “This is in line with the work of Gale and Orszag (2003) who argue that there are two important reasons for why budget de cits may raise interest rates: (i) public de cits reduce aggregate savings when private savings do not increase by the same amount and there are no compensating foreign capital…”
What are the effects of fiscal policy on asset markets (2011, background): “…despite the analysis of the macroeconomic effects of fiscal policy and the importance of asset markets over the business cycle, there is still 1 For a revision of the effects of fiscal policy on long-term interest rates, see, for example, Gale and Orszag (2003), Brook (2003), and Laubach (2009).”