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Fiscal multipliers with financial fragmentation risk and interactions with monetary policy

Darracq Pariès, Matthieu; Müller, Georg; … - 2020

exposed to the government sector. In this context, we show that central bank asset purchases or liquidity operations designed …

Persistent link: https://www.econbiz.de/10012241104

Dealing with a liquidity trap when government debt matters : optimal time-consistent monetary and fiscal policy ; conference paper

Burgert, Matthias; Schmidt, Sebastian - 2014

a liquidity trap? To provide an answer, we employ a small stochastic New Keynesian model with a zero bound on nominal …-term nominal interest rate and debt-financed government spending. The optimal policy response to a liquidity trap critically … sector expectations that helps to dampen the fall in output and inflation at the outset of the liquidity trap. …

Persistent link: https://www.econbiz.de/10010486054

Dealing with a liquidity trap when government debt matters optimal time-consistent monetary and fiscal policy

Burgert, Matthias; Schmidt, Sebastian - 2013

Persistent link: https://www.econbiz.de/10010233241

Debt stabilizing fiscal rules

Michel, Philippe; Thadden, Leopold von; Vidal, Jean-Pierre - 2006

Persistent link: https://www.econbiz.de/10009269065

Gambling to preserve price (and fiscal) stability

Corsetti, Giancarlo; Maćkowiak, Bartosz - 2023

We study a model in which policy aims at aggregate price stability. A fiscal imbalance materializes that, if uncorrected, must cause inflation, but the imbalance may get corrected in the future with some probability. By maintaining price stability in the near term, monetary policy can buy time...

Persistent link: https://www.econbiz.de/10014376056

Post-COVID fiscal rules : a central bank perspective

Hauptmeier, Sebastian; Leiner-Killinger, Nadine; … - 2022

Regarding a prospective reform of the European Stability and Growth Pact (SGP) it seems rather consensual that a simplified framework should take account of the prevailing macroeconomic context and enhance the balancing of sustainability and stabilisation considerations. This paper provides...

Persistent link: https://www.econbiz.de/10012939717

Monetary/fiscal policy regimes in post-war Europe

Bouabdallah, Othman; Jacquinot, Pascal; Patella, Valeria - 2023

In most euro area countries, the monetary/fiscal policy mix is responsible for the changing history of debt and inflation facts. Using a Dynamic Stochastic General Equilibrium model with Markov-switching policy rules, we identify three distinct monetary/fiscal regimes in France and Italy: a...

Persistent link: https://www.econbiz.de/10014482924

Managing the sovereign-bank nexus

Dell'Ariccia, Giovanni; Ferreira, Caio; Jenkinson, Nigel; … - 2018

This paper identifies the various channels that give rise to a "sovereign-bank nexus" whereby the financial health of banks and sovereigns is intertwined. We find that banks and sovereigns are linked by three interacting channels: banks hold large amounts of sovereign debt; banks are protected...

Persistent link: https://www.econbiz.de/10011901498

Household saving and fiscal policy : evidence for the euro area from a thick modelling perspective

Checherita-Westphal, Cristina; Stecher, Marcel - 2021

We study the relationship between fiscal policy and household saving across the euro area countries for the period 1999-2019. To this extent, we propose a thick modelling approach, which allows a vast number of model specifications in a dynamic panel setting. We find that fiscal expansions are...

Persistent link: https://www.econbiz.de/10012745340

Insolvency frameworks and private debt : an empirical investigation

Consolo, Agostino; Malfa, Federica; Pierluigi, Beatrice - 2018

This paper presents new evidence on the importance of insolvency frameworks for private sector debt deleveraging and for the resolution of non-performing loans (NPL). We construct an aggregate insolvency framework index (IFI), which is used as explanatory variable in the empirical analysis. By...

Persistent link: https://www.econbiz.de/10011921438