Government spending can boost the economy during a deep recession by increasing demand. However, new research challenges the traditional view that higher government spending leads to higher inflation. A new model shows that in recessions, government spending has a bigger impact on the economy than during expansions. This is because of factors like labor market frictions and rigid wages. The study found that the government spending multiplier is higher in recessions and at the zero lower bound, without needing wages and inflation to react strongly. This means that during tough economic times, government spending can have a bigger positive effect on the economy than previously thought.