A stimulus is a government engineered boost to total spending.

Others maintain that a temporary increase in spending now would boost growth.

Policymakers initially resorted to government spending and low interest rates to boost demand.

Interest rate cuts can boost borrowing and thus spending on investment and consumption.

I simply do not understand their arguments that government spending cannot boost the economy.

Meanwhile, higher public spending on capital investment and other special procurements will boost domestic demand.

The resulting rise in equity prices would increase household wealth, providing a boost to consumer spending.

But these are impeding the consumer spending needed to boost economic activity and kick start growth.

This boost in future oriented spending today pulls people out of unemployment and pushes up capacity utilization.

Thus, it is possible that increased government spending say, to boost car purchases could exacerbate the misalignment.

So, yes, government spending provides a short term boost, but there is a trade off with long run secular decline.

Unlike the economic boost that may occur from recovery spending to restore damaged physical assets, this is a deadweight loss.

Keynesian models claiming a quick boost from higher government spending below full employment show that the effect soon turns negative.

It is also true in Colombia, where strong budget revenues could allow for a temporary spending boost to counter external risks.

Against this background, government tax and spending policies, as well as labor market regulation, should be reformed to help boost female employment.

In many eurozone countries today, fiscal conservatives are a powerful group, insisting on the need to boost government revenue while bringing spending under control.

Nor is Romney s promise to enact immediate cuts in federal discretionary spending by an additional 5 likely to boost job growth, as he asserts.

Likewise, while reducing employment is one way to boost productivity, it implies high macroeconomic costs in terms of lost revenues and higher social spending.

The European Investment Bank would be a good vehicle in addition to new project bonds to boost spending on major infrastructure projects (for example, in the energy sector).

I simply do not understand their arguments that government spending cannot boost the economy. As far as I can tell, they are simply burying their heads in the sand.

Even for those taxpayers who had feared a tax increase in 2011 and 2012, it is not clear how much the lower tax payments will actually boost consumer spending.

Meanwhile, heightened international competition kept the lid on inflation, and interest rates remained low, giving a further boost to consumer spending and completing what looked like a virtuous growth circle.

Similarly, Ethiopia has made strides towards shifting agricultural policies and investing more in productivity improvements for small farmers, with increased spending helping to boost crop yields over the past several years.

At a time when every component of private demand was collapsing, the boost from higher government spending and lower taxes stopped the global economy s free fall and created the basis for recovery.

The US Federal Reserve will carry out more quantitative easing this year, but it will be ineffective long term interest rates are already very low, and lowering them further would not boost spending.

So India s medium term growth potential lies well below that of China in recent decades. A significant boost in infrastructure spending and policy reforms can make a difference, but it cannot close the gap.

The Fed hopes that it can handle the current situation without being forced to rescue market liquidity by cutting interest rates and thus giving what it fears would be an unhealthy boost to spending.

The non partisan US Congressional Budget Office reports that the 2009 spending increase and tax cuts gave a positive boost to the economy, and indeed had the extra multiplier effects predicted by traditional Keynesian models.

We would like to boost spending immediately by getting businesses to invest not only in projects that trade safe cash now for safe profits in the future, but also in those that are risky or uncertain.

I think that the Fed is wrong the fallout from the current liquidity panic means that a year from now we are likely to wish that the Fed had given a boost to spending this month.

How to Boost Foreign Investment

Chinese officials hope that higher household incomes will boost consumer spending, as the tightening labor market causes wages to rise and as urbanization shifts workers from low productivity farm work to higher wage employment in the cities.

President Barack Obama s administration seems to think that the problem is one of demand, and has passed stimulus measure after stimulus measure, reducing taxes and increasing transfers and government spending in order to boost consumption and investment.

Spending. Obama has dramatically increased spending.

The government did not set aside resources while things were going well, and now it does not have the fiscal space needed for an aggressive boost to public spending of the type that many other governments are attempting.

Flooding their economies with liquidity, maintaining export friendly exchange rates, and spending to employ workers directly and boost the supply of safe savings vehicles have made the Great Recession in East Asia less dire than it has been elsewhere.

This helps boost private consumption and investment.

Indeed, after four years (2007 2010) of either recession or sub par recovery, the process of balance sheet repair while not completed yet is underway, and may result in less saving and more spending to boost growth in advanced economies.

A world where over spending countries need to reduce domestic demand and boost net exports, while over saving countries are unwilling to reduce their reliance on export led growth, is a world where currency tensions must inevitably come to a boil.

That restructuring will occur, deficit spending or no deficit spending.

Making finance work should boost economic development significantly.

In broad strokes, this requires a deliberate and significant boost to research and development spending. Based on recent work by Isabel Galiana and Chris Green of McGill University, I advocate expenditure totaling around 0.2 of global GDP roughly 100 billion a year.

To be sure, international finance economists also see US exports benefiting as the value of the dollar declines, but the lags in demand are such that the export boost will come a year or two after the decline in consumption and investment spending.

Spending rate

The neo Keynesian economist wants to boost demand generally.