Fiscal policy during Great Recession leads to prolonged economic depression.
The article measures how government spending and taxes affect economic growth. They create a measure called fiscal impetus to see how fiscal policy behaved during past recessions and the recent one. They found that during the 2007 recession, policy was more expansionary than usual, but it became more contractionary during the recovery. By the end of 2012, fiscal impetus was below average and is expected to stay low in the future.