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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.


As part of our nation’s central bank, the Richmond Fed is one of 12 regional Reserve Banks working together with the Board of Governors to support a healthy economy and deliver on our mission to foster economic stability and strength. We connect with community and business leaders across the Fifth Federal Reserve District—including the Carolinas, District of Columbia, Maryland, Virginia, and most of West Virginia—to monitor economic conditions, address issues facing our communities, and share this information with monetary and financial policymakers. We also work with banks to ensure they are operating safely and soundly, supply financial institutions with currency that’s fit for distribution, and provide a safe and efficient way to transfer funds through our nation’s payments system.


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Jim Strader
(804) 697-8956
(804) 332-0207 (mobile)

Laura Fortunato
(804) 697-8196
(804) 698-0927 (mobile)