by Alberto Alesina and Francesco Giavazzi
Professor De long draws his comments on our article from the analysis he developed jointly with Larry Summers in a recent Brookings Panel paper (DeLong and Summers 2012). The two discussants of that paper, Martin Feldstein and Valerie Ramey have raised major concerns on the validity of such an analysis. Professor Ramey, in particular, points out that it is at odds with (and actually contradicted by) much of recent research on fiscal policy.
References
DeLong, Bradford and Lawrence Summers (2012). “Fiscal Policy in a Depressed Economy”, presented to BPEA, March 2012.