Showing 1 - 6 of 6
alternative approach that has been suggested for use in a liquidity trap, a scheduled increase in consumption tax rates. We find … that such a policy could, indeed, increase short-run consumption, but would be less effective at increasing welfare or …
Persistent link: https://www.econbiz.de/10013133109
In this paper I focus on two specific hazard areas in the transition from Stage Two to Stage Three of European economic and monetary union (EMU), as well as on some key problems of Stage Three that EMU's monetary and fiscal structures appear ill-prepared to handle. The transitional hazards are...
Persistent link: https://www.econbiz.de/10013235280
This paper argues that if policymakers seek to enhance global liquidity, then the international community must provide a higher and better coordinated level of fiscal support than it has in the past. Loans to troubled sovereigns or financial institutions imply a credit risk that ultimately must...
Persistent link: https://www.econbiz.de/10013120324
How will countries handle idiosyncratic national macroeconomic shocks under the European single currency? The ways in which European countries now react to internally asymmetric shocks provide a better forecast than do the regional response pattern of the United States. In this paper we compare...
Persistent link: https://www.econbiz.de/10013249688
This paper studies optimal fiscal policy in an economy where heterogeneous agents with uncertain lifetimes coexist. We show that some plausible social welfare functions lead to time-inconsistent optimal plans, and we suggest restrictions on social preferences that avoid the problem. The...
Persistent link: https://www.econbiz.de/10013229006
Persistent link: https://www.econbiz.de/10012177364