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Cross-Border Tax Externalities : Are Budget Deficits Too Small?

Buiter, Willem H.; Sibert, Anne - 2021

In a dynamic optimising model with costly tax collection, a tax cut by one nation creates positive externalities for the rest of the world if initial public debt stocks are positive. By reducing tax collection costs, current tax cuts boost the resources available for current private consumption,...

Persistent link: https://www.econbiz.de/10013247022

Generational Accounts, Aggregate Saving and Intergenerational Distribution

Buiter, Willem H. - 2021

Are generational accounts informative about the effect of the budget on the intergenerational distribution of resources and (when augmented with generation-specific propensities to consume out of life-time resources) on aggregate consumption and saving? The paper makes three points. First, the...

Persistent link: https://www.econbiz.de/10013226174

Implications for the Adjustment Process of International Asset Risks : Exchange Controls, Intervention and Policy Risk, and Sovereign Risk

Buiter, Willem H. - 2021

country risk, the paper discusses a number of modifications in the standard theory of efficient international financial … markets that are necessitated by the existence of country risk., For macroeconomic policy, the major implications are that …

Persistent link: https://www.econbiz.de/10013225837

The Role of Economic Policy after the New Classical Macroeconomics

Buiter, Willem H. - 2012

The paper considers the implications of the rational expectations - New Classical Macroeconomics revolution for the "rules versus discretion" debate. The following issues are covered 1) The ineffectiveness of anticipated stabilization policy, 2) Non-causal models and rational expectations, 3)...

Persistent link: https://www.econbiz.de/10013104026

Seigniorage

Buiter, Willem H. - 2007

Governments through the ages have appropriated real resources through the monopoly of the 'coinage'. In modern fiat money economies, the monopoly of the issue of legal tender is generally assigned to an agency of the state, the Central Bank, which may have varying degrees of operational and...

Persistent link: https://www.econbiz.de/10012777609

The Superiority of Contingent Rules Over Fixed Rules in Models with Rational Expectations

Buiter, Willem H. - 2010

The paper investigates the robustness of the proposition that in stochastic models contingent or feddback rules dominate fiped or openloop rules. Four arguments in favour of fixed rules are considere`. 1) The presence of an incompetent op malevolent policy maker. 2) A trade-off between...

Persistent link: https://www.econbiz.de/10012760069

The Role of Economic Policy after the New Classical Macroeconomics

Buiter, Willem H. - 2010

The paper considers the implications of the rational expectations New Classical Macroeconomics revolution for the 'rules versus discretion' debate. The following issues are covered: 1) The ineffectiveness of anticipated stabilization policy, 2) Non-clausal models and rational expectations, 3)...

Persistent link: https://www.econbiz.de/10012760072

Measuring Aspects of Fiscal and Financial Policy

Buiter, Willem H. - 2010

The paper develops a forward-looking comprehensive accounting framework for the public sector.By integrating the public sector budget constraint forward in time the government's present value budget constraint (PVBC) is obtained. In addition to the familiar financial assets and liabilities,...

Persistent link: https://www.econbiz.de/10012760343

The "Gold Standard Paradox" and its Resolution

Buiter, Willem H. - 2010

This paper analyzes Krugman's contention that there is a quot;gold standard paradoxquot; in the speculative attack literature. The paradox occurs if a country's currency appreciates after it runs out of gold or equivalently if a speculative attack can happen only after the country...

Persistent link: https://www.econbiz.de/10012762724

Efficient "Myopic" Asset Pricing in General Equilibrium : a Potential Pitfall in Excess Volatility Tests

Buiter, Willem H. - 2010

Excess volatility tests for financial market efficiency maintain the hypothesis of risk-neutrality. This permits the … from the risk-neutrality assumption in a stripped-down version of Lucas's general equilibrium asset pricing model, I show … variance bounds established under the assumption of risk neutrality. This can occur even without the problems of non …

Persistent link: https://www.econbiz.de/10012762911