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An update of Blanchard’s and Leigh’s estimates in ‘Growth Forecast Errors and Fiscal Multipliers ’

Mohlmann, Jan, Suyker, Wim, (2015), “An update of Blanchard’s and Leigh’s estimates in ‘Growth Forecast Errors and Fiscal Multipliers ’”, Voxeu, 1 Δεκεμβρίου

Olivier Blanchard and Daniel Leigh’s work on growth forecast errors and fiscal multipliers in 2009-2011 has been highly influential. This column extends their approach to recent years. The authors do not find convincing evidence for stronger-than-expected fiscal multipliers for EU countries during the sovereign debt crisis (2012-2013) or during the tepid recovery thereafter.

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