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Afonso, António; Sousa, Ricardo M. - 2009

This paper investigates the link between fiscal policy shocks and movements in asset markets using a Fully Simultaneous System approach in a Bayesian framework. Building on the works of Blanchard and Perotti (2002), Leeper and Zha (2003), and Sims and Zha (1999, 2006), the empirical evidence for...

Persistent link: https://www.econbiz.de/10003826474

The macroeconomic effects of fiscal policy

Afonso, António; Sousa, Ricardo M. - 2009

We investigate the macroeconomic effects of fiscal policy using a Bayesian Structural Vector Autoregression approach. We build on a recursive identification scheme, but we: (i) include the feedback from government debt (ii); look at the impact on the composition of output; (iii) assess the...

Persistent link: https://www.econbiz.de/10003826480

Fiscal Taylor rules in the postwar United States

Reicher, Christopher Phillip - 2009

Recent research and events have brought fiscal policy back into the spotlight. Fiscal Taylor rules and error correction models have represented two different ways of quantifying the feedbacks from fiscal and economic conditions to fiscal policy decisions. This paper synthesizes these two ideas,...

Persistent link: https://www.econbiz.de/10003827185

Fiscal and monetary policy determinants of the Eurozone crisis and its resolution

Dąbrowski, Marek - 2012

Unlike the crisis years of 2007-2009 (when the insolvency of large banks was a major problem), the current round of the global financial crisis has fiscal origins. Almost all developed countries suffer from an excessive public debt burden that has been built up over the last two decades or more....

Persistent link: https://www.econbiz.de/10009572988

Fiscal stimulus and distortionary taxation

Drautzburg, Thorsten; Uhlig, Harald - 2011 - This revision: May 30, 2011

We quantify the fiscal multipliers in response to the American Recovery and Reinvestment Act (ARRA) of 2009. We extend the benchmark Smets-Wouters (Smets and Wouters, 2007) New Keynesian model, allowing for credit-constrained households, the zero lower bound, government capital and distortionary...

Persistent link: https://www.econbiz.de/10009129765

An estimated fiscal Taylor rule for the postwar United States

Reicher, Christopher Phillip - 2011

This paper documents the systematic response of postwar U.S. fiscal policy to fiscal imbalances and the business cycle using a multivariate Fiscal Taylor Rule. Adjustments to taxes and purchases both account for a large portion of the fiscal response to debt, while authorities seem reluctant to...

Persistent link: https://www.econbiz.de/10009152534

Rules versus discretion in fiscal policy

Bianchi, Carluccio (contributor); … - 2007

This paper purports to apply the Kydland-Prescott framework of dynamic inconsistency to the case of fiscal policy, by considering the trade-off between output and debt stabilization. The Government budget constraint provides the link between debt dynamics and the level of activity, influenced by...

Persistent link: https://www.econbiz.de/10003747747

Fiscal policy after the crisis : what role for fiscal policy in times of crisis, low interest rates and high public debts?

Heise, Arne - 2022

In 2009, just before the full outbreak of the global financial crisis, Olivier Blanchard (2009) published an article giving a favourable appraisal of the state of macroeconomics. He came to this verdict on the basis that, after a long period of fierce theoretical debate, the discipline had...

Persistent link: https://www.econbiz.de/10012990275

Changes in the Response of Fiscal Policy to Monetary Policy in the EMU

Arora, Sanchit; Boeing-Reicher, Claire - 2014

We study the evolution of the response of fiscal policy to monetary policy shocks in the EMU in the light of two … important events: the signing of the Maastricht treaty in 1992 and the introduction of the EMU in 1999. Based on impulse … policy acted as complements after the introduction of the EMU. These results holds for a set of 11 non-EMU countries as well …

Persistent link: https://www.econbiz.de/10010362160

Economic policy coordination in the EMU : how much scope will there be within the framework of the stability and growth pact?

Breuss, Fritz; Weber, Andrea - 1999

for 10 EMU countries and for the ECB. The gains from cooperation are calculated by comparing two equilibria, a Nash and a … as a whole with the targets output gap and inflation. In the case of a "full" cooperation, where the 10 EMU countries … manoeuvre of fiscal policy of the EMU member states in stage III of EMU. Secondly, we find that not in all countries cooperation …

Persistent link: https://www.econbiz.de/10011491576