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Unformatted text preview: ntries in 2009 by the G20 stimulus
package. Without such spending, unemployment would probably have been much higher in
these countries. The current higher unemployment rates observed in both advanced
economies and developing economies is a phenomenon that fiscal spending has not be able to
easily eradicate. Thus, in view of the current output and employment figures, the overall
impact of the fiscal packages on output and employment can be said to be mixed at best. Conclusion In summary, the fiscal stimulus has not been a total failure and has definitely avoided a
second Great Depression, although with potential costs. Its failure lies in the poor design and
execution by the governments. A well-executed, well-targeted, timely and temporary
stimulus package along with a credible medium term fiscal framework and an
accommodative monetary policy adjusted to the country specific economic conditions should
act as a panacea to a global economic crisis. Along with these, policymakers also need to
focus on financial sector repair and reform, withdrawal of stimulus and rebalancing of global
demand. *Table 2 Bibliography • World Economic Out...
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- Winter '14