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This paper makes three main points. Fiscal policy, first, may be needed in the long run to maintain full employment and avoid secular stagnation. If fiscal policy is used in this way, second, the long-run debt ratio depends (i) inversely on the rate of growth, (ii) inversely on government...
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In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy … assumed to differ only with respect to GDP volatility which is calibrated based on the 1980-2008 period. The model predicts a … asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions …
Persistent link: https://www.econbiz.de/10014399356
In this paper we assess the implications of precautionary savings for global imbalances by considering a world economy … assumed to differ only with respect to GDP volatility which is calibrated based on the 1980-2008 period. The model predicts a … asset holdings. While heterogeneity in GDP volatility may lead to large imbalances in international investment positions …
Persistent link: https://www.econbiz.de/10013123991