Similar Search Results

Public investment and monetary policy stance in the euro area

Burlon, Lorenzo; Locarno, Alberto; Notarpietro, Alessandro - 2017

Persistent link: https://www.econbiz.de/10011943044

Sovereign default risk premia, fiscal limits and fiscal policy

Bi, Huixin - 2011

We develop a closed economy model to study the interactions among sovereign risk premia, fiscal limits, and fiscal policy. The stochastic fiscal limits, which measure the ability and willingness of the government to service its debt, arise endogenously from a dynamic Laffer curve. The...

Persistent link: https://www.econbiz.de/10008933594

Time-consistent management of a liquidity trap with government debt

Matveev, Dmitry - 2018

government to temporarily reduce debt. This decline stimulates output, which is inefficiently low during liquidity traps, by …

Persistent link: https://www.econbiz.de/10011881785

The welfare implications of fiscal dominance

De Resende, Carlos (contributor); Rebei, Nooman (contributor) - 2008

This paper studies the interdependence between fiscal and monetary policy in a DSGE model with sticky prices and non-zero trend inflation. We characterize the fiscal and monetary policies by a rule whereby a given fraction k of the government debt must be backed by the discounted value of...

Persistent link: https://www.econbiz.de/10003772978

Central bank haircut policy

Chapman, James; Chiu, Jonathan; Molico, Miguel - 2010

that a lending facility provides a bundle of two types of insurance: insurance against liquidity risk as well as insurance … liquidity constraints of agents on one hand, and increasing potential inflation risk and distorting the portfolio choices of … agents who actually need liquidity. Finally, for an unexpected drop in the haircut, the central bank can be more aggressive …

Persistent link: https://www.econbiz.de/10008659919

Monetary commitment and the level of public debt

Gnocchi, Stefano; Lambertini, Luisa - 2016

We analyze the interaction between committed monetary policy and discretionary fiscal policy in a model with public debt, endogenous government expenditures, distortive taxation and nominal rigidities. Fiscal decisions lack commitment but are Markovperfect. Monetary commitment to an interest...

Persistent link: https://www.econbiz.de/10011431600

Completing the monetary union of Europe as mid-term solution of the Euro crisis

Fischer, Justina A. V.; Pastore, Francesco - 2015

This research note discusses the Euro crisis in Greece in light of the referendum of July the 5th. It lays out the social and political costs of a GREXIT, but also of a continuing austerity policy. It proposes a reform policy fostering growth in Greece and discusses the role of conditionality....

Persistent link: https://www.econbiz.de/10011308548

Monetary policy, trends in real interest rates and depressed demand

Beaudry, Paul; Meh, Césaire Assah - 2021 - Last updated: August 16, 2021

Over the last few decades, real interest rates have trended downward in many countries. The most common explanation is that this reflects depressed demand due to demographic, technological and other real factors such as income inequality. In this paper we explore the claim that these trends may...

Persistent link: https://www.econbiz.de/10012546126

Discount rates, debt maturity and the fiscal theory

Corhay, Alexandre; Kind, Thilo; Kung, Howard; Morales, … - 2021 - Last updated: November 26, 2021

This paper examines how the transmission of government portfolio risk arising from maturity operations depends on the stance of monetary/fiscal policy. Accounting for risk premia in the fiscal theory allows the government portfolio to affect the expected inflation, even in a frictionless...

Persistent link: https://www.econbiz.de/10012670322

Uncertain fiscal consolidations

Bi, Huixin; Leeper, Eric M.; Leith, Campbell B. - 2013

The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax- or spending-based - are uncertain. We find that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt, and...

Persistent link: https://www.econbiz.de/10009781108