01905cas a2200253 a 4500 AALejournalIMF005688 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451871982 1018-5941 BD-DhAAL BD-DhAAL Stehn, Sven Jari. Fiscal and Monetary Policy During Downturns : Evidence From the G7 / Sven Jari Stehn, Daniel Leigh. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (23 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students This paper analyzes how fiscal and monetary policy typically respond during downturns in G7 countries. It evaluates whether discretionary fiscal responses to downturns are timely and temporary, and compares the response of fiscal policy to that of monetary policy. The results suggest that while responding more weakly and less quickly than monetary policy, discretionary fiscal policy is more timely than conventional wisdom would suggest, particularly in 'Anglo-Saxon' countries, but the response differs substantially across fiscal instruments. Both fiscal and monetary policy are found to be subject to an easing bias, with more easing during downturns than tightening during upturns; and liable to easing in response to erroneously perceived downturns, many of which are subsequently revised to expansions. Mode of access: Internet Leigh, Daniel. IMF Working Papers; Working Paper ; No. 2009/050 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/050/001.2009.issue-050-en.xml IMF e-Library