multiplier. It presents a New Open Economy Macroeconomics model which is extended with the formation of 'deep habits' by … producers to move their markups counter-cyclically and generates a positive fiscal multiplier of private consumption. The main … outcome is a mechanism elaborating that both openness to trade and exchange rate exibility limit the fiscal multiplier in …

fiscal multiplier. However, traditional macroeconomic models have difficulties in accounting for this evidence. It is the … monetary policy. The presence of counter-cyclical firm markups is a crucial ingredient to generating a fiscal multiplier of … fiscal multiplier. …