ABSTRACT
In the wake of the collapse of global financial markets in 2008 one of the more contentious issues has been the merits of the various economic stimulus and rescue packages implemented by national governments around the world (see, for example, OECD, 2009). Governments in both developed and developing countries moved quickly to disburse public funds in order to prime economies and assist ailing businesses, especially in the financial sector. Two of the larger packages in terms of percentage of gross domestic product (GDP) were announced by Aus- tralia and the United States. In Australia the Rudd Labor Government announced an AUS$42 billion stimulus package in February 2009. The U.S. package of a total of US$787 billion commenced with the passage of the American Recovery and Reinvestment Act of 2009 (ARRA Act), on top of the various rescue packages under the Troubled Asset Relief Program (TARP). The U.S. Congress passed further, smaller-scale economic stimulus measures in 2010.
