01823cas a2200277 a 4500 AALejournalIMF006146 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451874013 1018-5941 BD-DhAAL BD-DhAAL Laxton, Douglas. Fiscal Stimulus to the Rescue? : Short-Run Benefits and Potential Long-Run Costs of Fiscal Deficits / Douglas Laxton, Dirk Muir, Michael Kumhof, Susanna Mursula. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (40 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 uses the IMF's Global Integrated Monetary and Fiscal Model to compute shortrun multipliers of fiscal stimulus measures and long-run crowding-out effects of higher debt. Multipliers of two-year stimulus range from 0.2 to 2.2 depending on the fiscal instrument, the extent of monetary accommodation and the presence of a financial accelerator mechanism. A permanent 0.5 percentage point increase in the U.S. deficit to GDP ratio raises the U.S. tax burden and world real interest rates in the long run, thereby reducing U.S. and rest of the world output by 0.3-0.6 and 0.2 percent, respectively. Mode of access: Internet Kumhof, Michael. Muir, Dirk. Mursula, Susanna. IMF Working Papers; Working Paper ; No. 2009/255 Full text available on IMF http://elibrary.imf.org/view/journals/001/2009/255/001.2009.issue-255-en.xml IMF e-Library