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Persistent link: https://www.econbiz.de/10012040243
We demonstrate that the Fiscal Theory of the Price Level (FTPL) cannot be used to determine the price level uniquely in the overlapping generations (OLG) model. We provide two examples of OLG models, one with three 3-period lives and one with 62-period lives. Both examples are calibrated to an...
Persistent link: https://www.econbiz.de/10012894996
I review the contribution and influence of Milton Friedman's 1968 presidential address to the American Economic Association. I argue that Friedman's influence on the practice of central banking was profound and that his argument in favour of monetary rules was responsible for thirty years of low...
Persistent link: https://www.econbiz.de/10012922190
increased government purchases crowd out private consumption? 2) do increased government purchases reduce unemployment? Farmer … during WWII. We find that a temporary increase in government purchases does crowd out private consumption expenditure as in …
Persistent link: https://www.econbiz.de/10013134828
This paper uses a model with a continuum of equilibrium steady state unemployment rates to explore the effectiveness of fiscal policy. The existence of multiple steady state equilibria is explained by the presence of search and recruiting costs. I use the model to explain the current financial...
Persistent link: https://www.econbiz.de/10013152610
We introduce a solution technique for the study of discrete time stochastic models populated by long-lived agents. We introduce aggregate uncertainty and complete markets into a 'perpetual-youth' model of a kind first studied by Olivier Blanchard and we show that the pure-trade version of the...
Persistent link: https://www.econbiz.de/10013095876
Persistent link: https://www.econbiz.de/10012209533