Papadia, Andrea (2024) Fiscal policy under constraints:fiscal capacity and austerity during the Great Depression. The Economic History Review. pp. 90-118. ISSN 1468-0289
Abstract
The Great Depression was characterized by widespread fiscal policy mistakes in the form of a contractionary or insufficiently expansionary fiscal stance. Despite this general conclusion, there were large differences in the conduct of fiscal policy between countries. I find that a higher degree of fiscal capacity helped countries run less procyclical fiscal policies by allowing them to borrow more extensively. Lower borrowing costs only partially explain this finding. Taken together, the results indicate that interwar governments were constrained in their policies by past investments in fiscal capacity, and not just by Gold Standard membership, ideology, and inadequate knowledge, as commonly held in the literature.
Metadata
Item Type: | Article |
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Authors/Creators: |
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Copyright, Publisher and Additional Information: | © 2023 The Authors. |
Dates: |
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Institution: | The University of York |
Academic Units: | The University of York > Faculty of Social Sciences (York) > Economics and Related Studies (York) |
Depositing User: | Pure (York) |
Date Deposited: | 21 Apr 2023 10:40 |
Last Modified: | 15 Mar 2025 00:12 |
Published Version: | https://doi.org/10.1111/ehr.13253 |
Status: | Published |
Refereed: | Yes |
Identification Number: | 10.1111/ehr.13253 |
Open Archives Initiative ID (OAI ID): | oai:eprints.whiterose.ac.uk:198444 |
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