Showing 1 - 10 of 252
In this paper, we investigate the interactions between public debt and transfer policies in a framework based on Floden [2001], that we extend to allow for transitional dynamics between steady states. First, we show that, starting from a high level of public debt, it is possible to implement a...
Persistent link: https://www.econbiz.de/10010861360
This paper analyses the effects of transitory increases in government spending when public debt is used as liquidity by the private sector. Aggregate shocks are introduced into an incomplete-market economy where heterogenous, infitely-lived households face occasionally binding borrowing...
Persistent link: https://www.econbiz.de/10010861556
The main objective of this paper is to study the relationship between external public debt and equilibrium real exchange rate in developing countries. Using a extension of Obstfeld & Rogoff (1995) model we show that debt overhang tend to appreciate real exchange rate in the long run (Krugman...
Persistent link: https://www.econbiz.de/10010706900
With population ageing, fiscal consolidation has become of paramount importance for euro area countries. Consolidation can be pursued in various ways, with different effects on potential growth, which itself will be dragged down by ageing. A dynamic general equilibrium model with overlapping...
Persistent link: https://www.econbiz.de/10010707309
The methods England took to restructure its public debt during the British Financial Revolution consisted of improving liquidity. Accordingly, the State sought to reestablish its solvability by basing its debt on tax revenues as well as to homogenize it, reduce its cost and improve the operation...
Persistent link: https://www.econbiz.de/10010707325
According to the fiscal theory of the price level (FTPL), the interactions between monetary and fiscal policies with governments facing the possibility to act in a non-Ricardian manner make the general price level be fully determined. Here, depending on the expectations framework, we show to...
Persistent link: https://www.econbiz.de/10010708455
The methods England took to restructure its public debt during the British Financial Revolution consisted of improving liquidity. Accordingly, the State sought to reestablish its solvability by basing its debt on tax revenues as well as to homogenize it, reduce its cost and improve the...
Persistent link: https://www.econbiz.de/10010708572
This paper reconsiders the impact of public debt in an economy with heterogeneous households and incomplete markets to emphasize the short-run effects of an increase in public debt. As compared to models that rest on steady-state analysis, we show that the welfare gains of a public debt increase...
Persistent link: https://www.econbiz.de/10010708735
Persistent link: https://www.econbiz.de/10010861346
Persistent link: https://www.econbiz.de/10010861352