When is the Government Spending Multiplier Large?

We argue that the government spending multiplier can be very large when the nominal interest rate is constant. We focus on a natural case in which the interest rate is constant, which is when the zero lower bound on nominal interest rates binds. For the economies that we consider it is optimal to increase government spending in response to shocks that make the zero bound binding

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Year of publication:	2014
Authors:	Christiano, Lawrence J.
Other Persons:	Eichenbaum, Martin (contributor) ; Rebelo, Sergio T. (contributor)
Publisher:	[2014]: [S.l.] : SSRN
Subject:	Öffentliche Ausgaben \| Public expenditure \| Multiplikator \| Multiplier \| Zins \| Interest rate \| Taylor-Regel \| Taylor rule \| Theorie \| Theory

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Extent:	1 Online-Ressource (55 p)
Series:	Federal Reserve Bank of Atlanta CQER Working Paper ; No. 10-01
Type of publication:	Book / Working Paper
Language:	English
Notes:	Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments August 2010 erstellt
Other identifiers:	10.2139/ssrn.1680616 [DOI]
Classification:	E3 - Prices, Business Fluctuations, and Cycles ; E4 - Money and Interest Rates ; E5 - Monetary Policy, Central Banking and the Supply of Money and Credit ; H3 - Fiscal Policies and Behavior of Economic Agents
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10013069245