Massachusetts Institute of Technology: Roberto Rigobon's "Fiscal Multiplier"

Read these lecture notes, which provide a foundation for studying fiscal policy – that is, managing government taxing and spending – and monetary policy, or managing banking system, money markets, and interest rates. Those policies are presented in Unit 5 and Unit 6. The common element across those two policies is that the outcome is a multiple of the initial amount of change.

Click lec3_fiscl_mltpl.pdf link to view the file.