Effects of Macroeconomics

Discussion Econ
Student's Name
Institutional Affiliation
Instructor
Date
Hussain, S. M., & Liu, L. (2022). Macroeconomic effects of Government spending shocks: New narrative evidence from Canada. Journal of Macroeconomics, 103483.
The worldwide economic crisis of 2020, caused by the Great Recession of 2008 and the Covid-19-induced economic disaster, compelled countries to implement several stimulus initiatives. The plans emphasized how crucial it was to comprehend macroeconomic implications. Government expenditure shifted due to these effects, impacting the GDP of most nations.
The above article adds to the previously mentioned research by looking at the macroeconomic impacts of shocks to state expenditure in Canada from 1949 to 2012. With relation to exogenous changes in government spending throughout that time, it creates a novel measure of news using a narrative method. The authors collected information from official government publications, like budget speeches, to determine the quantity, timing, and purpose of projected changes in federal government spending. It was necessary to identif...