[eng] Estimation of the Implicit Inflation Target in the Euro Area. . Euro area countries as a whole have experienced a marked downward trend over the 1980s. Over this period, the unemployment rate has increased and economic activity has been sluggish. Changes in the implicit inflation target,...

[eng] The authors use two general-equilibrium models to assess the quantitative and dynamic impact of “ social VAT”, i.e., a tax reform that would substitute a value-added tax for employers’ social contributions. The first model is a Walrasian model with no frictions other than...

Standard business cycle models face difficulties generating (i) government spending multipliers exceeding unity and (ii) stabilizing effects of government size. Using a simple model with externality in labor supply, we show that a sufficient degree of complementarity between aggregate and...

This paper studies the local dynamic properties of a simple general equilibrium model with Social vat. Strict balanced budget rules often lead to real indeterminacy of aggregate equilibrium, leaving room for « sunspots » fluctuations. In a closed-economy setup, social vat escapes this...

Cet article étudie les effets des politiques de désin?ation sur la dynamique macroéconomique américaine. Les politiques de désin?ation sont identifiées à l?aide d?une technique d?épisode comme des chocs réduisant de façon permanente le niveau d?in?ation de long terme. Nous montrons que...

This paper assesses the time series properties of rational expectations models with news shocks. We show that news shocks allows to substantially improve the dynamic behavior of such models in generating higher persistence. We also warn the use of SVAR models to uncover news shocks.

We show that credit market imperfections substantially increase the government-spending multiplier when the economy enters a liquidity trap. This finding is explained by the tight association between capital goods and firms' collateral, a relationship that we highlight as the...