This paper suggests that the US recovery from the Great Depression was driven by a shift in expectations. This shift was caused by President Franklin Delano Roosevelt's policy actions. On the monetary policy side, Roosevelt abolished the gold standard and -- even more importantly -- announced...

This paper analyses the relation between US inflation and unemployment from the perspective of "frictional growth," a phenomenon arising from the interplay between growth and frictions. In particular, we examine the interaction between money growth (on the one hand) and various real and nominal...

We contribute to the debate on whether the U.S. large federal budget deficits are sustainable in the long run. We model the U.S. government deficit per capita as a threshold autoregressive process. We find evidence that the U.S. budget deficit is sustainable in the long run and that economic...

The article revisits the relationship between growth and public productive expenditures by investigating the growth impact of "new" public investment along with maintenance expenditures in public capital. We sketch out the importance of these components of public capital expenditures for growth...

The role of discretionary fiscal policy and automatic budget stabilisers on macroeconomic fluctuations in the Bulgarian economy during the last ten years is analysed. Descriptive and econometric analyses based on aggregate components of the consolidated state budget are presented. Discretionary...

L’article propose une revue des travaux récents de politique budgétaire effectués dans le cadre analytique et méthodologique de la nouvelle macroéconomie internationale développée à partir des contributions de Obstfeld et Rogoff (1995, 1998, 2002). La substitution de l’approche...