ByGiancarlo CorsettiandGernot Mueller Sizeable resort to fiscal policy seems justified because ... confidence effects that can undermine the expansionary impact of the fiscal intervention.

By contrast, estimates based on conventional measures of the fiscal policy stance used in the literature support the expansionary fiscal contractions hypothesis but appear to be biased toward ...

given all of the above, more likely the expansionary fiscal policy will end up being contractionary in terms of output. This will exacerbate the crises, especially given the “initial conditions ...