What is the fiscal multiplier and why is it so controversial?

By Sebastian Gechert (@SGechert), Head of Unit Macroeconomics of Income Distribution at the Macroeconomic Policy Institute (IMK) in Dusseldorf. Part 1:Fundamentals and empirical research What influence do changes in tax policy or state decisions on expenditure have on economic growth? For decades, this question has been controversially debated. For one, because it is a difficult question to answer. For another, … Read More