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Bi, Huixin; Leeper, Eric M. - 2013

The authors study the implications of fiscal policy behaviour for sovereign risk in a framework that determines a country's fiscal limit, the point at which, for economic or political reasons, taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the...

Persistent link: https://www.econbiz.de/10009783106

Fiscal Limits, External Debt, and Fiscal Policy in Developing Countries

Bi, Huixin; Shen, Wenyi; Yang, Shu-Chun S. - International Monetary Fund (IMF) - 2014

This paper studies fiscal policy effects in developing countries with external debt and sovereign default risks. State-dependent distributions of fiscal limits are simulated based on macroeconomic uncertainty and fiscal policy specifications. The analysis shows that expected future revenue plays...

Persistent link: https://www.econbiz.de/10010790332

Analyzing Fiscal Sustainability

Bi, Huixin; Leeper, Eric M. - Bank of Canada - 2013

The authors study the implications of fiscal policy behaviour for sovereign risk in a framework that determines a country’s fiscal limit, the point at which, for economic or political reasons, taxes and spending can no longer adjust to stabilize debt. A real business cycle model maps the...

Persistent link: https://www.econbiz.de/10010686951

Uncertain Fiscal Consolidations

Bi, Huixin; Leeper, Eric M.; Leith, Campbell - Bank of Canada - 2013

The paper explores the macroeconomic consequences of fiscal consolidations whose timing and composition - either tax- or spending-based - are uncertain. We find that the composition of the fiscal consolidation, its duration, the monetary policy stance, the level of government debt, and...

Persistent link: https://www.econbiz.de/10010849954

Analyzing fiscal sustainability

Bi, Huixin; Leeper, Eric M. - 2013

Persistent link: https://www.econbiz.de/10010319662

Uncertain fiscal consolidations

Bi, Huixin; Leeper, Eric M.; Leith, Campbell - 2013

Persistent link: https://www.econbiz.de/10010319687

Jointly Optimal Monetary and Fiscal Policy Rules Under Borrowing Constraints

Kumhof, Michael; Bi, Huixin - International Monetary Fund (IMF) - 2009

We study the welfare properties of an economy where both monetary and fiscal policy follow simple rules, and where a … a very low coefficient on inflation, which minimizes real wage volatility. The welfare gains of optimizing the fiscal … rule are far larger than the welfare gains of optimizing the monetary rule. The preferred fiscal instruments are government …

Persistent link: https://www.econbiz.de/10008561090

Uncertain fiscal consolidations

Bi, Huixin; Leeper, Eric M.; Leith, Campbell B. - 2013

Persistent link: https://www.econbiz.de/10009781108

Fiscal implications of interest rate normalization in the United States

Bi, Huixin; Shen, Wenyi; Yang, Shu-Chun S. - 2019

This paper studies the main channels through which interest rate normalization has fiscal implications in the United States. While unexpected inflation reduces the real value of government liabilities, a rising policy rate increases government financing needs because of higher interest payments...

Persistent link: https://www.econbiz.de/10012019865

Uncertain fiscal consolidations

Bi, Huixin; Leeper, Eric M.; Leith, Campbell B. - 2012

Persistent link: https://www.econbiz.de/10009537676