Narrow search
Showing 1 - 10 of 1,991
Cover Image
Monetary Stimulus Amidst the Infrastructure Investment Spree : Evidence from China's Loan-Level Data
Chen, Kaiji; Gao, Haoyu; Higgins, Patrick C.; Waggoner, … - 2022
We study the impacts of the 2009 monetary stimulus and its interaction with infrastructure spending on credit … access. Infrastructure investment driven by non-monetary factors, however, enhanced the monetary transmission to bank credit … allocated to LGFVs in infrastructure and at the same time weakened the impacts of monetary stimulus on bank credit to non …
Persistent link: https://www.econbiz.de/10013289458
Cover Image
Hiccups for Hipcs?
Burnside, A. Craig; Fanizza, Domenico - 2021
In this paper we discuss fiscal and monetary policy issues facing heavily-indebted poor countries (HIPCs) who receive debt reduction via the enhanced HIPC initiative. This debt relief program is distinguished from previous ones by its conditionality: freed resources must be used for poverty...
Persistent link: https://www.econbiz.de/10013232935
Cover Image
An Exploration of Optimal Stabilization Policy
Mankiw, N. Gregory - 2011
This paper examines the optimal response of monetary and fiscal policy to a decline in aggregate demand. The theoretical framework is a two-period general equilibrium model in which prices are sticky in the short run and flexible in the long run. Policy is evaluated by how well it raises the...
Persistent link: https://www.econbiz.de/10013124860
Cover Image
Structural and Stabilization Aspects of Fiscal and Financial Policy in the Dependent Economy
Buiter, Willem H. - 2021
The paper considers the response of a small, open dependent economy to a variety of fiscal and financial shocks as well as the influence of alternative budget balancing rules on the response of the system to such external shocks as a change in the world interest rate. The approach allows for...
Persistent link: https://www.econbiz.de/10013219715
Cover Image
Fiscal and Monetary Stabilization Policy at the Zero Lower Bound : Consequences of Limited Foresight
Woodford, Michael; Xie, Yinxi - 2022
This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a … particular, we reconsider the potential role of countercyclical fiscal transfers as a tool of stabilization policy. Because … even make possible complete stabilization of both aggregate output and inflation under certain circumstances, despite the …
Persistent link: https://www.econbiz.de/10013291981
Cover Image
The Evolution of Economic Understanding and Postwar Stabilization Policy
Romer, Christina D.; Romer, David H. - 2022
There have been large changes in the conduct of aggregate demand policy in the United States over the past fifty years. This paper shows that these changes in policy have resulted largely from changes in policymakers' beliefs about the functioning of the economy and the effects of policy. We...
Persistent link: https://www.econbiz.de/10013322316
Cover Image
Optimal Monetary and Fiscal Policy in a Currency Union
Galí, Jordi; Monacelli, Tommaso - 2022
monetary policy, coupled with nominal price rigidities, generates a stabilization role for fiscal policy, one beyond the …
Persistent link: https://www.econbiz.de/10013324158
Cover Image
What Ends Recessions?
Romer, Christina D.; Romer, David H. - 2022
This paper analyzes the contributions of monetary and fiscal policy to postwar economic recoveries. We find that the Federal Reserve typically responds to downturns with prompt and large reductions in interest rates. Discretionary fiscal policy, in contrast, rarely reacts before the trough in...
Persistent link: https://www.econbiz.de/10013309225
Cover Image
Procyclical Fiscal Policy in Developing Countries : Truth or Fiction?
Ilzetzki, Ethan - 2008
A large empirical literature has found that fiscal policy in developing countries is procyclical, in contrast to high-income countries where it is countercyclical. The idea that fiscal policy in developing countries is procyclical has all but reached the status of conventional wisdom. This has...
Persistent link: https://www.econbiz.de/10012770872
Cover Image
Procyclical Fiscal Policy and Asset Market Incompleteness
Fernández, Andrés; Guzman, Daniel; Lama, Ruy; Vegh, … - 2023
To explain the fact that government spending and tax policy are procyclical in emerging and developing countries, we develop a model for the joint behavior of optimal tax rates and government spending over the business cycle. Our set-up relies on financial frictions, which have been shown to be...
Persistent link: https://www.econbiz.de/10014257265