Contractionary Effects of Stabilization and Long-Run Growth
Working Paper #33
Paper 570kb pdf
This paper reviews models of long-run growth which assume that the economy is not on its so-called 'normal' path, and in which both aggregate demand and aggregate supply issues have a role in determining long-run growth. This review shows that contractionary stabilization policies can have adverse long-run effects on growth, and may in fact exacerbate the problems they were intended to solve.
About the Authors
Jaime Ros
Professor of Economics
University of Notre Dame
Amitava K. Dutt
Professor of Economics
University of Notre Dame
Publication Information
Type | Working Paper |
Program | Macroeconomic Policy |
Posted | 06/02/03 |
Download | 570kb pdf |
# Pages | 38 |