canonical medium scale DSGE model. When monetary policy is characterized by a Taylor rule, the output multiplier (the change in … cycle, whereas the welfare multiplier (the consumption equivalent change in a measure of aggregate welfare for the same …. The welfare multiplier is still procyclical under passive monetary policy, albeit less so than under a Taylor rule …

The fiscal “multiplier” seeks to measure how many additional dollars of output are gained or lost for each dollar of … fiscal expansion or contraction. In practice, the multiplier at any point in time depends on the monetary policy response and …-based approach, we show how to quantify the importance of these monetary-fiscal interactions. In the data, the fiscal multiplier …

We measure the size of the fiscal multiplier using a heterogeneous-agent model with incomplete markets, capital and ….We find that market incompleteness is key to determining the size of the fiscal multiplier, which is uniquely determined in … our model for any combination of fiscal and monetary policies of interest. The multiplier is 1.34 if deficit-financed and …

countries, (ii) the fiscal multiplier is relatively large in economies operating under predetermined exchange rates but is zero …

substitution effects, yielding uniform comparisons across models. By constraining the multiplier to tight ranges, model and prior …