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Federal Reserve Bank of Chicago
Economic Perspectives
The Macroeconomic Effects of the 2018 Bipartisan Budget Act
Jeffrey R. Campbell
Filippo Ferroni
Jonas D. M. Fisher
Leonardo Melosi
Abstract

The 2018 Bipartisan Budget Act raised government spending caps by $300 billion for fiscal years 2018 and 2019. While spending does not increase immediately, private sector investment and consumption may respond ahead of an anticipated fiscal stimulus. This Economic Perspectives article assesses the strength of this mechanism based on the private sector’s expectations.


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Jeffrey R. Campbell & Filippo Ferroni & Jonas D. M. Fisher & Leonardo Melosi, "The Macroeconomic Effects of the 2018 Bipartisan Budget Act" , Federal Reserve Bank of Chicago, Economic Perspectives, issue 2, pages 2-12, 2019.
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Keywords: Budget; Vector autoregression
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