On the neutrality of fiscal policy

Citations of this article
Mendeley users who have this article in their library.
Get full text


The paper explores the relationships between fiscal policy and real economic activity and prices for the six largest industrialized economies. Fiscal policy variables are shown to be consistent and rational functions of the behaviour of the economy. It is also confirmed that fiscal policy seems to have a consistent impact on subsequent real economic activity and prices. When multivariate time series analysis is used to breakdown overall fiscal policy into anticipated and unanticipated components, the anticipated components are shown generally to have just as much forecasting ability for subsequently realized economic variables as the unanticipated components. This does not appear to be consistent with the implications of pure rational expectations models. © 1982.




Fitzgerald, M. D., & Pollio, G. (1982). On the neutrality of fiscal policy. European Economic Review, 17(1), 87–98. https://doi.org/10.1016/0014-2921(82)90044-7

Register to see more suggestions

Mendeley helps you to discover research relevant for your work.

Already have an account?

Save time finding and organizing research with Mendeley

Sign up for free