Abstract
‘Crowding out’ refers to all the things which can go wrong when debt-financed fiscal policy is used to affect output. While the initial focus was on the slope of the LM curve, ‘crowding out’ now refers to a multiplicity of channels through which expansionary fiscal policy may in the end have little, no or even negative effects on output.
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Blanchard, O.J. (2018). Crowding Out. In: The New Palgrave Dictionary of Economics. Palgrave Macmillan, London. https://doi.org/10.1057/978-1-349-95189-5_647
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DOI: https://doi.org/10.1057/978-1-349-95189-5_647
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