Showing 1 - 10 of 153
We show that a .scal expansion by the core economies of the euro area would have a large and positive impact on periphery GDP assuming that policy rates remain low for a prolonged period. Under our preferred model speci.cation, an expansion of core government spending equal to one percent of...
Persistent link: https://www.econbiz.de/10011294265
This paper provides a comprehensive assessment of the macroeconomic and fiscal impact of unconventional monetary tools in small open economies. Using a DSGE model, we show that the exchange rate plays a critical role to amplify the favourable impact of unconventional monetary policy while it...
Persistent link: https://www.econbiz.de/10015372063
In light of the current low-interest-rate environment, we reconsider the merit of a money growth target (MGT) relative to a conventional in ation targeting (IT) regime, and to the notion of price level targeting (PLT). Through the lens of a New Keynesian model, and accounting for a zero lower...
Persistent link: https://www.econbiz.de/10012229943
higher than one suggesting that fiscal policy can be used to support monetary policy to stabilize the economy in case …
Persistent link: https://www.econbiz.de/10011990029
In this paper, we evaluate the consequences of super-active fiscal policy rules - that is, rules that call for tax cuts and/or spending increases as the government's debt level rises - in a standard New Keynesian model subject to an occasionally-binding zero lower bound on the monetary policy...
Persistent link: https://www.econbiz.de/10013161539
I study the welfare performance of a policy regime of fiscal activism in which fiscal policy acts as an automatic stabilizer and controls inflation, while monetary policy pegs the nominal interest rate. When evaluated through the lens of a standard New Keynesian model, accounting for price and...
Persistent link: https://www.econbiz.de/10013161545
We reconsider the role of an inflation conservative central banker in a setting with distortionary taxation. To do so, we assume monetary and fiscal policy are decided by independent authorities that do not abide to past commitments. If the two authorities make policy decisions simultaneously,...
Persistent link: https://www.econbiz.de/10010202952
The paper studies the interaction between the monetary and fiscal authorities in the Euro area and the block of outside countries during the Third Stage of EMU. Restraints on fiscal policies and outside monetary policy are introduced as utility costs related to the use of the tax instruments...
Persistent link: https://www.econbiz.de/10011583909
economy's underlying factor structure as the link between its real and financial sides, I find that high-frequency responses …
Persistent link: https://www.econbiz.de/10009760371
find that while financial sector leverage contains additional information about the state of the economy that is not …
Persistent link: https://www.econbiz.de/10011713865