It is often claimed that the presence of liquidity constrained households enhances the need for and the effects of fiscal stabilization policies. This paper studies this in a model of a small open economy with liquidity constrained households. The results show that the consequences of liquidity...

This paper reviews the relationship between the business cycle and public finances in Colombia. The evidence shows that cyclical movements in output systematically affect the situation of public finances. Hence, the distinction between the cyclical and permanent (i.e. structural) components of...

This paper reviews the close relationship between business cycle and public fi nances in Colombia. The international evidence shows that cyclical move-ments in output systematically affect the balance of public fi nances. Therefore, the assessment of cy-clical and structural components of the...

This paper reviews the relationship between the business cycle and public finances in Colombia. The evidence shows that cyclical movements in output systematically affect the situation of public finances. Hence, the distinction between the cyclical and permanent (i.e. structural) components of...

We study the consequences of non-neutrality of government debt for macroeconomic stabilization policy in an environment where prices are sticky. Assuming transaction services of government bonds, Ricardian equivalence fails because public debt has a negative impact on its marginal rate of return...

We study the consequences of non-neutrality of government debt for macroeconomic stabilization policy in an environment where prices are sticky. Assuming transaction services of government bonds, Ricardian equivalence fails because public debt has a negative impact on its marginal rate of return...

This paper provides an overall picture of the Philippine business cycles covering the period 1981 to 2003 by characterizing them in terms of volatility, co-movement and persistence. As a trend-cycle decomposition technique, the most frequently used Hodrick Prescott filter was applied. The period...

The paper reports results on the effects of stylized stabilization policies on endogenously created fluctuations. A simple monetary model with intertemporally optimizing agents is considered. Fluctuations in output may occur due to fluctuations in labor supply which are again caused by volatile...

We analyze the effects of simple stylized economic policy rules, or stabilization principles, when fluctuations in economic activity are created endogenously by self_fulfilling volatile expectations. We study a simple monetary competitive model with intertemporally optimizing agents and a...

The author introduces a simulation of counter-cyclical interventions that highlights important issues surrounding the practice of government intervention. The simulation provides experiential insight as to why economists have long debated the degree of persistence exhibited by disequilibrating...