Steven Fazzari: On the Effectiveness of Fiscal Stimulus 2/4

The video discusses the effectiveness of fiscal policy in different economic contexts, focusing on the US. It explores the impact of idle resources, reviews literature on fiscal multipliers, and examines the Keynesian demand channel. The discussion extends to open economy considerations and the implications of debt overhang on fiscal policy. The speaker argues that fiscal policy can be effective even with substantial debt, emphasizing the importance of context and the potential benefits of fiscal stimulus.

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