The Role of Fiscal Policy in the St. Louis Equation

Rik W. Hafer

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Monetary Policy and Economic Impact Fiscal Policies and Political Economy Fiscal Policy and Economic Growth

Abstract

The ‘‘St. Louis equation” relates the growth of nominal income (GNP) to both the growth of money and high-employment government expenditures. In other words, it attempts to explain changes in GNP by changes in monetary and fiscal actions.

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