Talk:Fiscal multiplier

message: the multiplier is a big myth, it is built on entirely unfounded premises, ignores opportunity cost and by the estimates of keynesian economists themselves (see  Bryant, Holtham and Hooper)using their own models drops to <1 after 2 years. Not to mention that nobody has actually measured it in real life. 
Even if we believed (yes faith is required in the absence of empirical evidence) that the logic behind the multiplier works, the effect of the negative multiplier when S is reduced makes it meaningless as far as policy implications go.
The other irony is that the multiplier is often used to justify govt. intervention, and yet the keynesians own studies strongly suggest that there is a larger multiplier for private investment than for government spenditure. Funny ain't it?
-Also, don't forget that if consumers spend all of their income, then the multiplier will be infinite. As Murray Rothbard said, "Sure beats working!"
:The problem with increasing aggregate demand is inflation. The above should be analysed with this in mind.Lost-n-translation (talk)  —Preceding undated comment added 18:56, 13 August 2011 (UTC)
thread_title:  Harry Potter and the Magic Multiplier 

message: I think that the criticisms of this theory should be included in this article too. What do you think?
of course, like any hypothesis or theory, it cannot be presented as fact. Including some reference to contradictory theories and criticism is necessary. --Flix2000 19:47, 13 October 2006 (UTC)
thread_title: Criticism of the Multiplier effect

message: I don't know why multiplier effect goes anywhere else.  This is what it is supposed to be. Carlitos (talk) 20:56, 12 December 2008 (UTC)
replies: text: No, a fiscal multiplier is a particular kind of multiplier. There are several different multiplier effects.   — Preceding unsigned comment added by 161.253.11.22 (talk) 19:33, 23 January 2013 (UTC)
thread_title:  The name of this article should be Multiplier Effect.   

message: Show Derivation would be nicer. Jackzhp (talk) 21:48, 20 March 2009 (UTC)
thread_title: Derivation

message: The current article covers both the spending multiplier and tax multipliers.  Together these are "fiscal multipliers," so I think we should change the page name to cover both.  At this point, there's not enough material to make pages for both spending and tax multipliers, so splitting the article doesn't seem like a good solution.  I would go ahead and move the article, but fiscal multiplier is a redirect to this page, so, assuming there's no opposition to the move, I'll get an admin to do the move.--Bkwillwm (talk) 05:04, 4 April 2009 (UTC)
replies: text: Moved.--Aervanath (talk) 13:59, 31 May 2009 (UTC)
thread_title: Name change

message: The terms ΔY, ΔK and I in the equation in the Definition section are not defined. Without any definition of the terms, the equation is pretty much useless. Unfortunately, I don't know the definition, so I cannot expand on it. --Dolda2000 (talk) 02:15, 17 April 2009 (UTC)
thread_title:  Definition shortcomings 

message: This page is hard to follow, and the topic is hard to define precisely, because the term 'fiscal multiplier' is used in very different types of economic models and theories. It would be helpful to give a general definition of the meaning of the term, and then have a large subsection on the meaning of the term in Keynesian economics.
In general, a fiscal multiplier refers to how much some endogenous macroeconomic variable (such as GDP) responds to an exogenous change in some fiscal variable (such as government spending). There are many possible combinations of endogenous and exogenous variables one might want to analyze, so there are many possible multiplier formulas (as this page makes clear). This is the usual meaning of 'multiplier' in economics, and in a static model it is derived by comparative statics analysis. In a dynamic model there are still more possible meanings: it may refer to the immediate impact of the exogenous variable on the exogenous variable, or the long run impact, or also on some medium run impacts; the general topic forms part of impulse reponse analysis.
However, the fiscal multiplier is most closely associated with Keynesian theory (most nonspecialists only hear about 'fiscal multipliers' in some Keynes-related chapter of a macroeconomics textbook), and Keynesians have defined the concept in a somewhat nonstandard way. Often it refers to the change in GDP in response to some fiscal variable in the Keynesian cross diagram. In that case, it (usually) represents the effect of the fiscal variable on GDP holding fixed interest rates and investment and many other variables. The total effect in the Keynesian cross diagram can also be interpreted as how much the IS curve shifts right in the IS-LM diagram. These Keynesian interpretations are actually what the formulas on this page refer to.  
How all this stuff fits into macroeconomic theory would be much clearer if the page attempted to separate the concept of a fiscal multiplier in general from the Keynesian concept of a fiscal multiplier. Alternatively, this page could be moved to Keynesian multiplier or Keynesian fiscal multiplier. --Rinconsoleao (talk) 14:59, 1 June 2009 (UTC)
thread_title:  Should separate the general analysis from the Keynesian analysis 

message: Dr. Calitz has reviewed this Wikipedia page, and provided us with the following comments to improve its quality:
We hope Wikipedians on this talk page can take advantage of these comments and improve the quality of the article accordingly.
We believe Dr. Calitz has expertise on the topic of this article, since he has published relevant scholarly research:
*Reference : Estian Calitz & Krige Siebrits & Ian Stuart, 2013. "Enhancing the credibility of fiscal forecasts in South Africa: Is a fiscal council the only way?," Working Papers 25/2013, Stellenbosch University, Department of Economics.
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thread_title:  Dr. Calitz's comment on this article 

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