Fiscal austerity policies post-recession may harm GDP growth, study finds.
The article tests the effects of government policies aimed at reducing spending after the 2008-2009 recession. The researchers analyze how these "contractionary" policies impact the economy's growth. The results shed light on the debate about the effectiveness of such policies, known as "fiscal multipliers". The findings offer new insights into economic models and help compare different approaches to understanding how government actions influence economic outcomes.