Is fiscal policy effective?

Valerie A. Ramey of the Hoover Institution has a new NBER paper that examines the impact of lump sum transfer payments on aggregate demand. Here is the abstract:

This paper re-evaluates the effectiveness of temporary transfers in stimulating the macroeconomy, using evidence from four case studies. The rebirth of Keynesian stabilization policy has lingering costs in terms of higher debt paths, so it is important to assess the benefits of these policies. In each case study, I analyze whether...