| Description |
1 online resource (39 pages) : color illustrations |
| Series |
IMF working paper ; WP/09/106 |
|
IMF working paper ; WP/09/106.
|
| Contents |
I. Introduction; II. Model; A. Final Good Firms; B. Intermediate Good Firms; C. Households; D. Government; E. Equilibrium; III. Fiscal Policy Transmission with Spending Reversals; A. Parameterization; Tables; 1. Parameterization of the Model; B. Quantitative Analysis; Figures; 1. Effect of Government Spending Shocks: Sticky Price vs. Flexible Price Allocation; 2. Effect of Government Spending Shocks: Debt-Stabilizing vs. Debt- Insensitive Spending Rule; 3. Effect of Government Spending Shocks: Model with Limited Participation in Asset Markets; IV. Time Series Evidence |
|
A. VAR SpecificationB. Results; 4. Fiscal Policy Transmission According to VAR Model: Effects of VAR Shock; 5. Fiscal Policy Transmission According to VAR Model: Effects of Military Event; V. Conclusion; References; Appendices; I. More Simulation Results; Appendix Figures; A.1. Effect of Government Spending Shocks: Debt-Stabilizing vs. Debt- Insensitive Government Spending under Complete Markets; A.2. Effects of Government Spending Shocks: High Debt Elasticity of Interest Rates vs. Baseline; II. Data; III. Sensitivity Analysis of VAR Results |
|
A.3. Fiscal Policy Transmission According to VAR Model: Effects of VAR Shock. Sensitivity AnalysisA. 4. Fiscal Policy Transmission According to VAR Model: Effects of Military Event. Sensitivity Analysis; A.5. Fiscal Policy Transmission According to VAR Model: Effects of VAR Shock in Nominal VAR; A.6. Fiscal Policy Transmission According to VAR Model: Effects of Military Event in Nominal VAR |
| Summary |
The impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that links current stimulus to a subsequent period of spending restraint. Accounting for such spending reversals brings an otherwise standard new Keynesian model in line with the stylized facts of fiscal transmission, including the crowding-in of consumption and the 'puzzle' of real exchange rate depreciation. Time series evidence f |
| Bibliography |
Includes bibliographical references (pages 29-32) |
| Notes |
Print version record |
| Subject |
Expenditures, Public.
|
|
Fiscal policy.
|
|
Transmission mechanism (Monetary policy)
|
|
Foreign exchange rates.
|
|
Money -- Tables.
|
|
Money
|
|
Expenditures, Public
|
|
Fiscal policy
|
|
Foreign exchange rates
|
|
Transmission mechanism (Monetary policy)
|
| Genre/Form |
tables (documents)
|
|
Tables (Data)
|
|
Tables
|
|
Tables (Data)
|
|
Tables (Données)
|
| Form |
Electronic book
|
| Author |
Meier, Andre, author
|
|
Müller, Gernot, 1943- author.
|
|
International Monetary Fund. European Department.
|
|
