We study simple fiscal rules for stabilizing the government debt level in response to asymmetric demand shocks in a country that belongs to a currency union. We compare debt stabilization through tax rate adjustments with debt stabilization through expenditure changes. While rapid and flexible...

Versión actualizada (mayo 2019) ; Las grandes empresas de Estados Unidos, al difundir tecnología a través del comercio de intermedios, parecen ser clave para la producción de Europa en el medio plazo. De cara a explicar esta evidencia, el presente trabajo desarrolla un modelo de dos países...

In this paper we study jointly optimal ¯scal and monetary policies in a small open economy framework with capital and sticky prices. We consider the case of distor- tionary taxes on labor and capital, and no public debt. As in a closed economy set{up, in the steady state, the optimal in°ation...

Using a sticky-price DSGE matching model of a small open economy in a currency union, we compare the business cycle implications of several different fiscal rules that all achieve the same reduction in the standard deviation of the public debt. In our simulations, compared with rules that adjust...

Este artículo estudia las consecuencias sobre el crecimiento y el bienestar de diversas políticas fiscales con y sin límites a la deuda pública. En la economía modelo, el gasto público puede tener dos papeles diferentes, bien como un factor en la función de producción, o bien...

This paper presents a new model of Bertrand competition between heterogeneous firms in the open economy where the macroeconomic distribution of markups responds to the degree of trade openness and the underlying level of technology in each trading partner. The model's simple closed-form...

We study simple fiscal rules for stabilizing the government debt level in response to asymmetric demand shocks in a country that belongs to a currency union. We compare debt stabilization through tax rate adjustments with debt stabilization through expenditure changes. While rapid and flexible...

¿Cómo la información privada afecta las decisiones de cartera de inversión? ¿Qué valor tiene ese tipo de información? Este trabajo estudia el impacto de la información privada en la cartera de inversiones y demostramos que no es tanto la cantidad de información privada, sino la calidad...

This paper analyzes the decreased volatility of U.S. macroeconomic variables starting in the 1980's in a model where monetary policy is affected by financial frictions. The model is estimated for postwar U.S. data with a break in 1981:3, allowing for changes in the policy rule, shock processes...