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Fiscal Policy and the External Deficit : Siblings, but not Twins
Helliwell, John F. - 1990
This paper first surveys a number of partial and macroeconomic approaches to the determination of the current account, and then summarizes the evidence from multicountry economic models about the linkages between U.S. government spending and the U.S. current account during the 1 980s. The...
Persistent link: https://www.econbiz.de/10012475722
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Capital Flows, Investment, and Exchange Rates
Stockman, Alan C. - 1985
prices with investment and production. We use the model to calculate theoretical covariances between investment, the current … flows, exchange rates, investment, and the terms of trade are critically dependent on optimal portfolio allocations and the …
Persistent link: https://www.econbiz.de/10012477484
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Debt, Deficits and Finite Horizons : The Stochastic Case
Farmer, Roger - 2009
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/10012463624
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Government Debt and Capital Accumulation in an Era of Low Interest Rates
Mankiw, Nicholas Gregory - National Bureau of Economic Research - 2022
This essay discusses the reasons for and implications of the decline in real interest rates around the world over the past several decades. It suggests that the decline in interest rates is largely explicable from trends in saving, growth, and markups. In this environment, greater government...
Persistent link: https://www.econbiz.de/10013210052
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Investment Cycles and Sovereign Debt Overhang
Aguiar, Mark - 2007
to vary with the state of the economy, generating cyclicality in investment and debt in an environment where the first … best capital stock is a constant. The government's lack of commitment induces a negative correlation between investment and … and cannot affect the long-run level of investment. Further, restricting the government to a balanced budget can eliminate …
Persistent link: https://www.econbiz.de/10012465299
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Market Power in Neoclassical Growth Models
Ball, Laurence M.; Mankiw, Nicholas Gregory - National Bureau of Economic Research - 2021
This paper examines the optimal accumulation of capital and the effects of government debt in neoclassical growth models in which firms have market power and therefore charge prices above marginal cost. In this environment, the real interest rate earned by savers is less than the net marginal...
Persistent link: https://www.econbiz.de/10012496091
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Sovereign Debt Markets in Turbulent Times : Creditor Discrimination and Crowding-Out Effects
Broner, Fernando - 2013
reallocated from the private to the public sectors, reducing investment and deepening the recessions even further. To account for …. This implies that domestic debt purchases displace productive investment. The model shows that these purchases reduce …
Persistent link: https://www.econbiz.de/10012458985
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The Business Cycles of Balance-of-Payment Crises : A Revision of Mundellan Framework
Mendoza, Enrique G. - 1999
In his seminal 1960 article Robert Mundell proposed a model of balance-of-payments crises in which confidence in the continuation of a currency peg depended on the observed holdings of central bank foreign reserves. We examine the implications of a reformulation of this view from the perspective...
Persistent link: https://www.econbiz.de/10012471756
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External Balance Sheets and the COVID-19 Crisis
Hale, Galina; Juvenal, Luciana - National Bureau of Economic Research - 2021
international investment positions to measure overall valuation effects. We show that for many countries currency-induced valuation …
Persistent link: https://www.econbiz.de/10012629497
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The Trade Reform Wave of 1985-1995
Irwin, Douglas A. - National Bureau of Economic Research - 2022
The decade from 1985 to 1995 was an unprecedented period of declining barriers to global trade. The reform wave was especially pronounced in developing countries where overvalued currencies were eliminated, quantitative import restrictions dismantled, and import tariffs reduced. What accounts...
Persistent link: https://www.econbiz.de/10013191068