Johannsen, Benjamin K. - Federal Reserve Board (Board of Governors of the … - 2014
Using a new-Keynesian model with endogenous capital accumulation, I show that uncertainty about fiscal policy can cause … and the wage tax rate has particularly large effects. I show that the effects of fiscal policy uncertainty are largest … when the nominal interest rate is on the cusp of the ZLB and also that delaying fiscal policy uncertainty diminishes its …