This paper examines the empirical relationship between government debt and the real interest margin between Australian and US 10 year government bond yields. Results for the period 1990 to 2009 suggest that Australian general government net debt has no impact on the short run real interest...

The main objective of macroeconomic policy is achieved by using instruments available to its makers, and certainly one of the most important is the one related to monetary and fiscal policy. However, the use of the mentioned instruments is complex, given the fact that they are in the hands of...

This paper presents the main features of the macroeconomic model being used at The Levy Economics Institute of Bard College, which has proven to be a useful tool in tracking the current financial and economic crisis. We investigate the connections of the model to the 'New Cambridge' approach,...

The euro area is currently going through its worst period of recession and economic stagnation since the Great Depression and World War II. The article tries to give an impression of the extraordinary degree of fiscal austerity and the devastating economic effects it has already had and must be...

This paper develops a macroeconomic forecasting model focusing on fiscal policy and economic growth in Nepal. The structure of the model, which comprises a total of 14 equations, allows alternative policy options for maintaining fiscal stability and promoting economic growth as well as switching...