OECD countries often plan counter-cyclical fiscal policy during expansions.
The article analyzes how governments plan their spending during different economic times. By looking at the initial budget plans made by countries, the study shows that many OECD countries aim to spend more during economic expansions to help boost the economy. This is different from what actually happens later on, where spending tends to be more neutral or even harmful to the economy. The study finds that errors in predicting the government's finances and the economy's performance are key reasons for this difference.