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Contributions to Political Economy Advance Access published online on March 29, 2006
Contributions to Political Economy, doi:10.1093/cpe/bzl002
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The Author 2006. Published by Oxford University Press on behalf of the Cambridge Political Economy Society. All rights reserved

Review Article

The ebb and flow of fiscal activism

Aldo Barba 1

1 Università di Napoli "Federico II"


  Abstract

During the last quarter of the 20th Century, the conventional wisdom prevailing in academic, political and financial circles was definitely against government deficits. At the turn of the century, however, a substantial recourse to deficit spending practices in the United States reopened the debate on the usefulness of countercyclical fiscal policies. This essay discusses the main contents of this debate, reviewing the contributions to various symposiums held at a number of U.S. Federal Reserve Banks. A comparison with the views on this issue prevailing in Europe is also provided.


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