Showing 1 - 10 of 23
Persistent link: https://www.econbiz.de/10011569804
Persistent link: https://www.econbiz.de/10011863361
Persistent link: https://www.econbiz.de/10003514713
This paper examines the fiscal requirements for continuous full employment. We find that (i) changes in the financial behavior of households and firms require adjustments in tax rates and public debt, (ii) the stability of the steady-state solution for public debt depends on the fiscal...
Persistent link: https://www.econbiz.de/10009357198
Fiscal policy is needed to avoid dynamic inefficiency and maintain full employment in a modified Diamond OLG model with imperfect competition. A distributionally neutral tax scheme can maintain full employment in the face of variations in "household confidence". No variations in taxes will be...
Persistent link: https://www.econbiz.de/10009357203
Persistent link: https://www.econbiz.de/10009769801
We show that (i) dynamic inefficiency may be empirically relevant in a modified Diamond model with imperfect competition, (ii) if fiscal policy is used to avoid inefficiency and maintain an optimal capital intensity, the required debt ratio will be inversely related to the growth rate, and (iii)...
Persistent link: https://www.econbiz.de/10010193872
Fiscal policy and public debt may be required to maintain full employment and avoid secular stagnation. This conclusion emerges from a range of different models, including OLG specifications and stock-flow consistent (post-) Keynesian models. One of the determinants of the required long-run debt...
Persistent link: https://www.econbiz.de/10011522155
This paper examines the role of fiscal policy in the long run. We show that (i) dynamic inefficiency in a standard OLG model generates aggregate demand problems in a Keynesian setting, (ii) fiscal policy can be used to achieve full-employment growth, (iii) the required debt ratio is inversely...
Persistent link: https://www.econbiz.de/10011522164
This paper examines the implications of different monetary and fiscal policy rules in an economy characterized by Harrodian instability. We show that (i) a monetary rule along Taylor lines can be stabilizing for low debt ratios but becomes de-stabilizing if the debt ratio exceeds a certain...
Persistent link: https://www.econbiz.de/10011522169