What Do We Know About The Effects Of Fiscal Policy? Separating Evidence From Ideology
From Critiques Of Libertarianism
Choose one of these to see this page:
- http://www.econ.berkeley.edu/~cromer/Written%20Version%20of%20Effects%20of%20Fiscal%20Policy.pdf or search for this URL in the Internet Archive.
Christina Romer's empirical confirmation of Keynesian fiscal stimulus theory is a beautiful example of how econometric research can answer important questions with natural experiments. It shows clearly what's wrong with Austrian and most other conservative economic reasoning. She explains how to deal with omitted variable bias, and where that hasn't been done in opposing research.