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The fiscal footprint of macroprudential policy

Reis, Ricardo - 2020

Monetary policy leaves a fiscal footprint. In some circumstances, relieving the fiscal burden becomes the main goal of policy, and inflation control is subordinate. This article notes that the same is true of macroprudential policy, and it characterizes the size and sign of its fiscal footprint,...

Persistent link: https://www.econbiz.de/10012222608

The power of forward guidance in a quantitative TANK model

Gerke, Rafael; Giesen, Sebastian; Scheer, Alexander - 2020

We quantify the macroeconomic effects of interest rate forward guidance in an estimated medium-scale two-agent New Keynesian (TANK) model. In general, such models can dampen or amplify the power of forward guidance compared to a representative agent model. Our empirical estimates indicate a...

Persistent link: https://www.econbiz.de/10012170548

The EU structural funds as a means to hamper migration

Schmidt, Peter - 2012

convergence or economic cohesion, respectively. Following this strand of theory no regional policy is needed to achieve … convergence among the regions or nations of a common market. Thus, comparing the two internal markets, the question comes up if … inhibiting internal migration, which is one of the key measures in achieving convergence among the nations in the Single European …

Persistent link: https://www.econbiz.de/10011515661

Budget-neutral labour tax wedge reductions : a simulation-based analysis for selected euro area countries

Attinasi, Maria-Grazia; Prammer, Doris; Stähler, Nikolai; … - 2016

Budget-neutral tax wedge reductions rank high in the policy agenda of several EMU member states. Using a New Keynesian DSGE model of a monetary union with a complex labour market structure and a comprehensive public sector, we evaluate the macroeconomic and welfare effects of reducing the firms'...

Persistent link: https://www.econbiz.de/10011518187

Monetary-fiscal interaction and quantitative easing

Hollmayr, Josef; Kühl, Michael - 2019

This paper analyzes the monetary-fiscal interaction if the central bank conducts quantitative easing. Although asset purchases have similar effects on the real economy under monetary and fiscal dominance, wealth effects yield a qualitatively different response on the rate of inflation. Our...

Persistent link: https://www.econbiz.de/10011955624

Fiscal regimes and the (non)stationarity of debt

Hollmayr, Josef - 2018

This paper analyzes the sustainability of fiscal debt contingent on fiscal policy operating in two fiscal regimes. The first regime is characterized by active policy (not reacting to debt) and the other by passive fiscal policy (reacting to debt). The average duration for which either regime can...

Persistent link: https://www.econbiz.de/10011846884

German labor market and fiscal reforms 1999 to 2008 : can they be blamed for intra-euro area imbalances?

Gadatsch, Niklas; Stähler, Nikolai; Weigert, Benjamin - 2015

In this paper, we assess the impact of major German structural reforms from 1999 to 2008 on key macroeconomic variables. By many, these reforms, especially the Hartz reforms on the labor market, are considered to be the root of observed imbalances in the Euro Area. Our simulations within a...

Persistent link: https://www.econbiz.de/10011316580

Fiscal deficits, financial fragility, and the effectiveness of government policies

Kirchner, Markus; Wijnbergen, Sweder van - 2012

Recent macro developments in the euro area have highlighted the interactions between fiscal policy, sovereign debt, and financial fragility. We take a structural macroeconomic model with frictions in the financial intermediation process, in line with recent research, but introduce asset choice...

Persistent link: https://www.econbiz.de/10009625616

Does Wagner’s law ruin the sustainability of German public finances?

Priesmeier, Christoph; Koester, Gerrit B. - 2012

The empirical and theoretical literature on long-term relationships in public finance is dominated by two approaches: Fiscal sustainability and Wagner’s law of an increasing state activity. In this paper, we argue that these two relationships should be analyzed simultaneously and not...

Persistent link: https://www.econbiz.de/10009528897

Structural and cyclical effects of tax progression

Kremer, Jana; Stähler, Nikolai - 2013

In a real business cycle model with labor market frictions, we find that a more progressive tax schedule reduces structural unemployment as it fosters long-run incentives for job creation. Because there exists an optimal level of unemployment in a matching environment ("Hosios condition), tax...

Persistent link: https://www.econbiz.de/10009739558