02346cas a2200277 a 4500 AALejournalIMF007991 230101c9999 xx r poo 0 0eng d 5.00 USD 9781455268368 2617-6742 BD-DhAAL BD-DhAAL Lee, Jaewoo. The Case for Global Fiscal Stimulus / Jaewoo Lee, Douglas Laxton, Michael Kumhof, Charles Freedman. Washington, D.C. : International Monetary Fund, 2009. 1 online resource (27 pages) IMF Staff Position Notes <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 presents simulations with a multicountry structural model to show that worldwide expansionary fiscal policy combined with accommodative monetary policy can have significant multiplier effects on the world economy. It also provides a framework for assessing the effects of fiscal actions needed to help counter the projected contractionary pressures in the world economy. In an ideal scenario where fiscal stimulus is both global and supported by monetary accommodation, and where financial sectors that are under pressure are being supported by governments, every dollar spent on government investment can increase GDP by about USD 3, while every dollar of targeted transfers can increase GDP by about USD 1. In countries in which fiscal space is limited, it will be especially important to focus fiscal stimulus actions on those measures that will have the largest effect on aggregate demand. It is particularly important for fiscal policy to take on an increased share of the burden during the period in which the financial sector is recovering and is not yet able or willing to extend credit to households and businesses to the extent that it normally does. Mode of access: Internet Freedman, Charles. Kumhof, Michael. Laxton, Douglas. IMF Staff Position Notes; Staff Position Note ; No. 2009/003 Full text available on IMF http://elibrary.imf.org/view/journals/004/2009/003/004.2009.issue-003-en.xml IMF e-Library