Reisen, Helmut (contributor); Grandes, Martín (contributor) - 2005
markets, high rates suck them back towards safe havens. As liabilities grow in dollar,
yen and euros, mismatches in the balance sheets of emerging‐market private and public sector
have often developed, in particular when the Fed has kept interest rates lower and … of what is at stake: an expansive OECD fiscal policy tends initially to raise world output
as disposable income and, through the fiscal multiplier, world demand. Van Wijnbergen shows
that, with no crowding out (as the private sector … demand for OECD goods, as the higher public spending falls
disproportionately on OECD home goods and as income …