Press Releases

Economic Brief

Sept. 6, 2017

Richmond Fed Research Explores the Government Spending Multiplier

The Richmond Fed’s new Economic Brief  suggests that a longstanding assumption about the effects of changes in government spending — that they influence the economy to the same degree whether the change in spending is an increase or a decrease — is not accurate. Richmond Fed economic research indicates that the fiscal multiplier does vary according to the direction of the fiscal action and also varies with the stage of the economic cycle.

The Richmond Fed’s Economic Brief series provides web-exclusive essays on current economic issues and trends. Sign up to receive an email notification when a new essay is posted.


The Richmond Fed serves the Fifth Federal Reserve District, which includes the District of Columbia, Maryland, North Carolina, South Carolina, Virginia and most of West Virginia. As part of the nation's central bank, we're one of 12 regional Reserve Banks that work together with the Federal Reserve's Board of Governors to strengthen the economy and our communities. We manage the nation's money supply to keep inflation low and help the economy grow. We also supervise and regulate financial institutions to help safeguard our nation's financial system and protect the integrity and efficiency of our payments system.


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