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Many nations of the world have enacted fiscal stimulus plans in response to the global, ongoing recession. These nations have used different combinations of government spending and tax cuts to boost their sagging economies. Most of these plans are based on the Keynesian theory that deficit spending by governments can replace some of the demand lost during a recession and prevent the waste of economic resources idled by a lack of demand. The International Monetary Fund has recommended that countries implement fiscal stimulus measures equal to 2% of their GDP to help offset the global contraction.