The effect of unconventional fiscal policy on consumption expenditure

Francesco D’Acunto, Daniel Hoang and Michael Weber

The Euro area faces zero inflation paired with low economic growth, at a time when the effective lower bound on nominal interest rates and large budget deficits are constraining conventional monetary and fiscal policy. In this article, we discuss the theoretical and empirical evidence on unconventional measures of fiscal policy that increase inflation, spur economic growth, and keep the tax burden on households constant without inducing budget deficits.

MoreLess

Year of publication:	2017
Authors:	D'Acunto, Francesco ; Hoang, Daniel ; Weber, Michael
Published in:	ifo DICE report. - Munich : ifo Institute, ISSN 2511-7823, ZDB-ID 2884329-0. - Vol. 15.2017, 1, p. 9-11
Subject:	Finanzpolitik \| Verbrauchsteuer \| Umsatzsteuer \| Inflationserwartung \| Ankündigungseffekt \| Privater Konsum \| Eurozone \| Private consumption \| Sales tax \| Announcement effect \| Dauerhafte Konsumgüter \| Durable goods \| Schätzung \| Estimation \| Deutschland \| Germany \| Inflation expectations \| Euro area \| Excise tax \| Fiscal policy

Type of publication:	Article
Type of publication (narrower categories):	Aufsatz in Zeitschrift ; Article in journal
Language:	English
Notes:	Zusammenfassung in englischer Sprache
Other identifiers:	hdl:10419/167294 [Handle]
Classification:	D12 - Consumer Economics: Empirical Analysis ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving
Source:	ECONIS - Online Catalogue of the ZBW

Persistent link: https://www.econbiz.de/10011713415