Did the ‘stimulus’ work?

In the budget papers (Box 4 of Budget Paper No.2) , the Treasury says that there is robust statistical evidence from the IMF that the economies applying the stimulus experienced an upside growth surprise of 3.3 percent for every additional 1 percent of GDP devoted to fiscal stimulus.

But they made this up, as Sinclair Davidson shows, by selectively chosing data from the IMF report that is its source.

Sloppiness? Dishonesty? Hard to say. Disgraceful, in either case.

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