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The long-run determinants of U.S. external imbalances

Ferrero, Andrea - Federal Reserve Bank of New York - 2007

quantitatively three potential determinants of the U.S. external imbalances in the last three decades: productivity growth …, demographic factors, and fiscal policy. The results suggest that (1) productivity growth differentials are the main driving force …

Persistent link: https://www.econbiz.de/10005726628

Benefits and spillovers of greater competition in Europe: a macroeconomic assessment

Bayoumi, Tamim; Laxton, Douglas; Pesenti, Paolo - Federal Reserve Bank of New York - 2004

We estimate the macroeconomic benefits and international spillovers of an increase in competition using a general-equilibrium simulation model with nominal rigidities and monopolistic competition in product and labor markets. We draw three conclusions after calibrating the model to the euro area...

Persistent link: https://www.econbiz.de/10005526265

How should suburbs help their central cities?

Haughwout, Andrew F.; Inman, Robert P. - Federal Reserve Bank of New York - 2004

In this paper, we study the question whether suburbs should help finance the core public services of their central cities. We review three arguments that have been offered in favor of suburbs' fiscal assistance to their central cities. First, the central city provides public services that...

Persistent link: https://www.econbiz.de/10005420503

The advantage of flexible targeting rules

Ferrero, Andrea - Federal Reserve Bank of New York - 2008

This paper investigates the consequences of debt stabilization for inflation targeting. If the monetary authority … perfectly stabilizes inflation while the fiscal authority holds constant the real value of debt at maturity, the equilibrium … inflation targeting appears to be more robust than flexible debt targeting to alternative parameter configurations and steady …

Persistent link: https://www.econbiz.de/10005420654

Stabilizing expectations under monetary and fiscal policy coordination

Eusepi, Stefano; Preston, Bruce - Federal Reserve Bank of New York - 2008

This paper analyzes how the formation of expectations constrains monetary and fiscal policy design. Economic agents have imperfect knowledge about the economic environment and the policy regime in place. Households and firms learn about the policy regime using historical data. Regime uncertainty...

Persistent link: https://www.econbiz.de/10004994125

Fiscal multipliers and policy coordination

Eggertsson, Gauti B. - Federal Reserve Bank of New York - 2006

government spending increases demand by increasing public consumption. Deficit spending increases demand by generating inflation …

Persistent link: https://www.econbiz.de/10005726567

The relationship between government financial condition and expected tax rates reflected in municipal bond yields

Park, Sangkyun - Federal Reserve Bank of New York - 1995

that a positive relationship exists between the expected tax rate and federal debt. Inflation also positively affects the … expected tax rate, suggesting that investors may expect tight fiscal policies when inflation is high. Qualitative results are …

Persistent link: https://www.econbiz.de/10005726604

Cúrdia, Vasco; Reis, Ricardo - Federal Reserve Bank of New York - 2010

The dynamic stochastic general equilibrium (DSGE) models used to study business cycles typically assume that exogenous disturbances are independent first-order autoregressions. This paper relaxes this tight and arbitrary restriction by allowing for disturbances that have a rich contemporaneous...

Persistent link: https://www.econbiz.de/10008553244

Learning the fiscal theory of the price level: some consequences of debt management policy

Eusepi, Stefano; Preston, Bruce - Federal Reserve Bank of New York - 2011

This paper examines how the scale and composition of public debt can affect economies that implement a combination of “passive” monetary policy and “active” fiscal policy. This policy configuration is argued to be of both historical and contemporary interest in the cases of the U.S. and...

Persistent link: https://www.econbiz.de/10009320709

Short-run fiscal policy: welfare, redistribution, and aggregate effects in the short and long run

Kitao, Sagiri - Federal Reserve Bank of New York - 2010

This paper quantifies the effects of two short-run fiscal policies, a temporary tax cut and a temporary rebate transfer, that are intended to stimulate economic activity. A reduction in income taxation provides immediate incentives to work and save more, raising aggregate output and consumption....

Persistent link: https://www.econbiz.de/10008616999