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Changes in the Response of Fiscal Policy to Monetary Policy in the EMU
Arora, Sanchit; Reicher, Claire - Institut für Weltwirtschaft (IfW) - 2014
We study the evolution of the response of scal policy to monetary policy shocks in the EMU in the light of two … important events: the signing of the Maastricht treaty in 1992 and the introduction of the EMU in 1999. Based on impulse … as complements after the introduction of the EMU. These results holds for a set of 11 non-EMU countries as well, which …
Persistent link: https://www.econbiz.de/10011093913
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Secular stagnation
Bossone, Biagio - Institut für Weltwirtschaft (IfW) - 2014
This study analyzes the emergence of secular stagnation as the consequence of a rise in the preference for liquidity. Such a rise is caused by a persistent set of pessimistic expectations. This study also investigates the effectiveness of a broad range of demand-management policies in dealing...
Persistent link: https://www.econbiz.de/10011076235
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Die Bedeutung monetärer Größen für die deutsche Wachstumsschwäche 1995-2005
Dovern, Jonas; Jannsen, Nils; Scheide, Joachim - Institut für Weltwirtschaft (IfW) - 2009
Between 1995 and 2005, the German economy has experienced a phase of weak economic growth. We analyze whether this weak growth performance can be attributed to the stance of monetary conditions during that period. We show that the real effective exchange rate did have almost no dampening effects...
Persistent link: https://www.econbiz.de/10005566192
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When Inflation Persistence Really Matters: Two examples
Kirsanova, Tatiana; Vines, David; Wren-Lewis, Simon - Institut für Weltwirtschaft (IfW) - 2007
In this paper we present two examples where the presence of inflation persistence could influence the qualitative nature of monetary policy. In the first case the desirability of a monetary policy regime comes under question when extensive inflation persistence exists. In the second case the...
Persistent link: https://www.econbiz.de/10005818793
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Liquidity Traps, Learning and Stagnation
Evans, George; Guse, Eran; Honkapohja, Seppo - Institut für Weltwirtschaft (IfW) - 2007
We examine global economic dynamics under learning in a New Keynesian model in which the interest-rate rule is subject to the zero lower bound. Under normal monetary and fiscal policy, the intended steady state is locally but not globally stable. Large pessimistic shocks to expectations can lead...
Persistent link: https://www.econbiz.de/10005700647
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Inflation Expectations, the Phillips Curve and Monetary Policy
Millet, Fabien Curto - Institut für Weltwirtschaft (IfW) - 2007
Conjectures about inflation expectations are inextricably linked to our understanding of the relationship between the real and monetary sides of the economy; yet, direct empirical research on the matter has been scarce at best. This paper therefore examines the empirical properties of inflation...
Persistent link: https://www.econbiz.de/10005700546
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Structural heterogeneity and partial budgetary cooperation in a monetary union
Menguy, Séverine - Institut für Weltwirtschaft (IfW) - 2012
The paper analyzes the usefulness of budgetary cooperation in a monetary union, even if it is limited to a subgroup of countries with close structural characteristics. The author finds that its advantages depend on the nature of the shocks and on the width of the heterogeneities within the...
Persistent link: https://www.econbiz.de/10010956125
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An Estimated Fiscal Taylor Rule for the Postwar United States
Reicher, Christopher - Institut für Weltwirtschaft (IfW) - 2011
This paper documents the systematic response of postwar U.S. fiscal policy to fiscal imbalances and the business cycle using a multivariate Fiscal Taylor Rule. Adjustments to taxes and purchases both account for a large portion of the fiscal response to debt, while authorities seem reluctant to...
Persistent link: https://www.econbiz.de/10009149137
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The Macroeconomic Effects of Fiscal Consolidation in Dynamic General Equilibrium
Schwarzmüller, Tim; Wolters, Maik - Institut für Weltwirtschaft (IfW) - 2014
We provide a systematic analysis of fiscal consolidation in a medium-scale dynamic general equilibrium model. Our results show that the choice of the consolidation instrument is very important, not only with respect to the short- and long-run output effects of the different consolidation...
Persistent link: https://www.econbiz.de/10010933265
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Fiscal targeting rules and economic stability under distortionary taxation
Reicher, Claire - Institut für Weltwirtschaft (IfW) - 2014
While European countries have engaged in a debate about fiscal policy rules, little is known about the ability of these rules to ensure stable debt and output paths when taxes are distortionary, particularly in a small open economy. In this situation, it turns out that the interaction between a...
Persistent link: https://www.econbiz.de/10010942768