At the zero lower bound, the central bank's inability to offset shocks endogenously generates volatility. In this setting, an increase in uncertainty about future shocks causes significant contractions in the economy and may lead to non-existence of an equilibrium. The form of the monetary...

In an article in this journal, “The Fraud of Macroeconomic Stabilization Policy,” Gallaway and Vedder (2000; hence G&V) state that their: “arguments can be summarized with the following propositions" (pp. 31–32) (1.) All major macroeconomic paradigms have as their centerpiece the...

This paper analyses the use of aggregate demand policies to ensure full-employment growth in the long run. The results support Victoria Chick's warning in Macroeconomics after Keynes against the misapplication of short-run Keynesian policy prescriptions to long-run problems

This article theoretically examines the impact of different forms of government spending on national income in a financially open economy with a significant net international investment position the central bank of which sets domestic interest rates to target inflation. It shows that whether...

In ranking fiscal stimulus programs, it is useful to focus on the ratio of extra aggregate demand to extra national debt that results. This note argues that (because of repayment after the end of a recession) "national lines of credit"-that is, government-issued credit cards with countercyclical...

Main description: Der vorliegende Band vereint ausgewählte wirtschaftswissenschaftliche Publikationen von Wolfgang Schmitz aus vier Jahrzehnten. -- Motiviert wurden die wirtschaftsethischen Arbeiten insbesondere durch seine schon früh einsetzende wirtschaftspolitische Tätigkeit. 1950 trat er...