Reconsidering the effectiveness of expansionary policies in developed economies: stimulating a renewed debate
DOI:
https://doi.org/10.17811/ebl.15.3.2026.179-191Palabras clave:
fiscal policy, monetary policy, developed countries, expansionary policies, public policiesResumen
The influence of public policy on the economies of developed countries has increased significantly after the great financial crisis and pandemic. Discussions are underway regarding the efficient use of public resources and the viability of increasing public spending and financing a growing deficit without a more accommodative monetary policy. Consequently, both fiscal multipliers and the effectiveness of monetary policy are declining. Research has demonstrated that tax cuts are a more effective means of boosting economic activity, while unconventional policies tend to produce adverse effects. The primary goal of this article is to provide a comprehensive overview of the impact of expansionary fiscal and monetary policies, thereby contributing to the ongoing debate on enhancing the efficiency of public policies.
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