Can an expansive fiscal policy deliver an economic miracle in the USA?

Driven by an overall criticism of globalisation, the new US administration is committed to stimulating the national economy. Despite a generally questionable economic policy direction, this aim definitely appears plausible given the country’s weak growth rates since the end of the Great Depression. Our analysis shows, however, that the US economy is currently in a healthy business cycle. Without countermeasures, a short-sighted fiscal policy will therefore inevitably lead to an overheating of the economy. Long-term investments in infrastructure and capital, on the other hand, can provide a lasting solution to the real problem: low potential growth.

Can an expansive fiscal policy deliver an economic miracle in the USA?(PDF, 63 KB, non-accessible)