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Secular stagnation : insights from a new Keynesian model with hysteresis effects

Aarle, Bas van - 2016

To analyse the most important aspects of the Secular Stagnation hypothesis, this paper considers the effects of hysteresis in potential output in a New-Keynesian model that is extended with endogenous potential output. To do so, a number of simulations of relevant scenarios is undertaken. It is...

Persistent link: https://www.econbiz.de/10011444072

Transatlantic monetary and fiscal policy interaction

Aarle, Bas van; Garretsen, Harry; Huart, Florence - 2003

This paper studies the design, effects and interactions of monetary and fiscal policies in the euro-area and between the euro-area and the non euro-area. To do so, a stylized three-country model of monetary and fiscal policy rules is constructed. It is analyzed how monetary and fiscal rules...

Persistent link: https://www.econbiz.de/10011509484

The worst of both worlds : fiscal policy and fixed exchange rates

Born, Benjamin; D'Ascanio, Francesco; Müller, Gernot J.; … - 2019

Under fixed exchange rates, fiscal policy is an effective tool. According to classical views because it impacts the real exchange rate, according to Keynesian views because it impacts output. Both views have merit because the effects of government spending are asymmetric. A spending cut lowers...

Persistent link: https://www.econbiz.de/10012118599

Staying together or breaking apart : policy-makers endogenous coalitions formation in the European economic and monetary union

Aarle, Bas van; Di Bartolomeo, Giovanni; Engwerda, … - 2002

In this paper, we analyze coordination of macroeconomic stabilization policies within the EMU by focusing, in a dynamic …

Persistent link: https://www.econbiz.de/10011410410

Keynesian, non-Keynesian or no effects of fiscal policy changes? : the EMU case

Aarle, Bas van - 2001

period to the Economic andMonetary Union (EMU). Using several approaches suggested in the literatureon fiscal adjustments and … their macroeconomic effects and in the literatureon EMU, we analyze the effects of the fiscal adjustments during this … periodon private consumption. Thereby, we also take the specific context of thetransition towards EMU explicitly into …

Persistent link: https://www.econbiz.de/10011400376

Reversible environmental catastrophes with disconnected generations

Heijdra, Ben J.; Heijnen, Pim - 2018

We study environmental policy in an economy-ecology model featuring multiple deterministic stable steady-state ecological equilibria. The economy-ecology does not settle in either of the deterministic steady states as the environmental system is hit by random shocks. Individual live for two...

Persistent link: https://www.econbiz.de/10011924595

Environmental policy and the macroeconomy under shallow-lake dynamics

Heijdra, Ben J.; Heijnen, Pim - 2009

We study the environmental and economic effects of public abatement in the presence of multiple stable steady-state ecological equilibria. Under shallow-lake dynamics (SLD), the isocline for the stock of pollution features two stable branches, a good and a bad one. Assuming that the ecology is...

Persistent link: https://www.econbiz.de/10003910506

A temporary VAT cut as unconventional fiscal policy

Bachmann, Ruediger; Born, Benjamin; Goldfayn-Frank, Olga; … - 2021

We exploit the unexpected announcement of an immediate, temporary VAT cut in Germany in the second half of 2020 as a natural experiment to study the spending response to unconventional fiscal policy. We use survey and scanner data on households' consumption expenditures and their perceived...

Persistent link: https://www.econbiz.de/10012668478

The liquidity channel of fiscal policy

Bayer, Christian; Born, Benjamin; Luetticke, Ralph - 2020

We provide evidence that expansionary fiscal policy lowers the return difference between more and less liquid assets—the liquidity premium. We rationalize this finding in an estimated heterogeneous-agent New-Keynesian (HANK) model with incomplete markets and portfolio choice, in which public...

Persistent link: https://www.econbiz.de/10012231567

Monetary and fiscal policy design under EMU : a dynamic game approach

Aarle, Bas van; Engwerda, Jacob Christiaan; Plasmans, … - 2000

(EMU) as a dynamic game between a centralized monetary authority, the European Central Bank (ECB), and national fiscal …

Persistent link: https://www.econbiz.de/10009781533