Economics
How Fiscal Multipliers Vary Across Economic Recessions
Quick fact
Economists estimate that fiscal multipliers can be more than twice as large during deep recessions compared to normal times, sometimes exceeding 1.5, meaning every dollar of government spending boosts GDP by more than a dollar.
Why this is interesting
During the 2008 financial crisis, many governments spent billions to stimulate their economies. But the same spending might have had far less impact if done a few years earlier. Why?