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Getting to Know GIMF; The Simulation Properties of the Global Integrated Monetary and Fiscal Model

Anderson, Derek; Hunt, Ben; Kortelainen, Mika; Kumhof, … - International Monetary Fund (IMF) - 2013

The Global Integrated Monetary and Fiscal model (GIMF) is a multi-region, forward-looking, DSGE model developed by the Economic Modeling Division of the IMF for policy analysis and international economic research. Using a 5-region version of the GIMF, this paper illustrates the modelâ€™s...

Persistent link: https://www.econbiz.de/10011242434

International Currency Portfolios

Kumhof, Michael - International Monetary Fund (IMF) - 2009

This paper develops a theory of international currency portfolios that holds in general equilibrium, and that is therefore not subject to the criticisms directed at the portfolio balance literature of the 1980s. It shows that, under plausible assumptions about fiscal policy, the relationship...

Persistent link: https://www.econbiz.de/10010790426

The Case for Global Fiscal Stimulus

Lee, Jaewoo; Laxton, Douglas; Kumhof, Michael; … - International Monetary Fund (IMF) - 2009

Persistent link: https://www.econbiz.de/10010790469

Simple, Implementable Fiscal Policy Rules

Kumhof, Michael; Laxton, Douglas - International Monetary Fund (IMF) - 2009

This paper analyzes the scope for systematic rules-based fiscal activism in open economies. Relative to a balanced budget rule, automatic stabilizers significantly improve welfare. But they minimize fiscal instrument volatility rather than business cycle volatility. A more aggressively...

Persistent link: https://www.econbiz.de/10004999963

Jointly Optimal Monetary and Fiscal Policy Rules Under Borrowing Constraints

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

a very low coefficient on inflation, which minimizes real wage volatility. The welfare gains of optimizing the fiscal …

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

Fiscal Stimulus to the Rescue? Short-Run Benefits and Potential Long-Run Costs of Fiscal Deficits

Laxton, Douglas; Muir, Dirk; Kumhof, Michael; Mursula, … - International Monetary Fund (IMF) - 2009

This paper uses the IMF's Global Integrated Monetary and Fiscal Model to compute shortrun multipliers of fiscal stimulus measures and long-run crowding-out effects of higher debt. Multipliers of two-year stimulus range from 0.2 to 2.2 depending on the fiscal instrument, the extent of monetary...

Persistent link: https://www.econbiz.de/10008497609

Simple Monetary Rules Under Fiscal Dominance

Kumhof, Michael; Nunes, Ricardo; Yakadina, Irina - International Monetary Fund (IMF) - 2007

Is aggressive monetary policy response to inflation feasible in countries that suffer from fiscal dominance? We find … principle can produce unique equilibria. However, resulting inflation is extremely volatile and zero lower bound on nominal … interest rates is frequently violated. Within the set of feasible rules the optimal response to inflation is highly negative …

Persistent link: https://www.econbiz.de/10005768929

Effects of Fiscal Stimulus in Structural Models

Kumhof, Michael; Muir, Dirk; Resende, Carlos de; Jan in … - International Monetary Fund (IMF) - 2010

The paper assesses, using seven structural models used heavily by policymaking institutions, the effectiveness of temporary fiscal stimulus. Models can, more easily than empirical studies, account for differences between fiscal instruments, for differences between structural characteristics of...

Persistent link: https://www.econbiz.de/10008470409

Pricing Policies and Inflation Inertia

Kumhof, Michael; Céspedes, Luis Felipe; Parrado, Eric - International Monetary Fund (IMF) - 2003

shocks this model generates the empirically observed slow (inertial) and prolonged (persistent) reaction of the inflation … shocks mostly through a change in the long-run or inflation updating component of their pricing policies. With staggered … pricing policies there is a time lag before this is reflected in aggregate inflation. …

Persistent link: https://www.econbiz.de/10005599311

Balance of Payments Crises Under Inflation Targeting

Li, Shujing; Yan, Isabel K.; Kumhof, Michael - International Monetary Fund (IMF) - 2007

This paper analyzes a small open economy model under inflation targeting. It shows why such a monetary regime is … targeting, CPI inflation targeting, domestic nontradables inflation targeting, and money targeting. Under inflation targeting …

Persistent link: https://www.econbiz.de/10005605061