This description of crowding-out and crowding-in, and why crowding-in is likely to dominate in recessions, is from Baumol and Blinder’s principles text, Macroeconomics: Principles and Policy.

Find out how contractionary fiscal policy can theoretically lead to a crowding-in effect in the credit market by encouraging private investment. Skip to content News ...

Historically, the prominence of fiscal policy as a policy tool has waxed and waned. Before 1930, an approach of limited government, or laissez-faire, prevailed. With the stock market crash and the ...

Paul Krugman writes (The Doctrine of Immaculate Crowding Out): I’ve written before about the doctrine of immaculate transfer in international macroeconomics, which is a common fallacy but not, I ...

Fiscal policy is the way governments take in revenue through taxes and spends it on different public services. Browse Investopedia’s expert-written library to learn more.

The House of Representatives passed its version of the fiscal year (FY) 2025 budget reconciliation bill on May 22 by the narrow margin of 215 to 214, with one Member voting present. The bill ...