Galí, Jordi; López-Salidoz, J. David; Vallés, Javier - Center for Financial Studies - 2004
-Ricardian) consumers. We show how the interaction of the latter with sticky prices and deficit financing can account for the existing …
New Keynesian model to allow for the presence of rule-of-thumb (non-Ricardian) consumers.
We show how the interaction of … spending.
JEL Classification: E32, E62
Keywords: Rule-of-Thumb Consumers, Fiscal Multiplier, Government Spending, Taylor …