Savings, in a financial sense, can be defined as postponed consumption. This definition implies that a household has to have an income first, before contemplating whether to spend such income in the current or in a future period. In the U.S., the two largest accumulations of savings are in...

We consider a frictionless constant endowment economy based on Leeper (1991). In this economy, it is shown that, under an ad-hoc monetary rule and an ad-hoc fiscal rule, there are two equilibria. One has active monetary policy and passive fiscal policy, while the other has passive monetary...

The coronavirus is causing considerable damage to the global economy, and the potential damage is continuing to grow. Unlike many other crises, evaluating the economic impact of the coronavirus is extremely challenging, due to the complexity of the ways in which it affects economic activity....

The research focused on the causes of inflation and public debt reversal in the West African Monetary Zone (WAMZ) economies. Several factors influencing public debt reversal and inflation, including weak institutions, high government spending, influence from external shock and lack of proper...

Central banks’ economic and political importance has grown in advanced economies since the start of the Great Financial Crisis in 2007. An unwillingness or inability of governments to use countercyclical fiscal policy has made monetary policy the only stabilization tool in town. However, much...

In January 2007, U.K. Government debt to GDP stood at 32.5%. By December 2019 it had grown to 89.5% and the latest data from September 2020 show a government debt level of just over £2 trillion, while its debt to GDP level did increase to 103.5%. The Quantitative Easing program by the Bank of...

In a series of lectures Dr. Ben S. Bernanke , the former Chairman of the Federal Reserve, discussed the two main responsibilities of central banks-financial stability and economic stability. Financial stability is achieved by central banks standing ready to act as lenders of last resort by...

Sufficiently persistent rise in nominal interest increases inflation rate in short-run. This short-run comovement of nominal interest rate and inflation rate is known as Neo-Fisherianism. This paper proposes a policy based on Neo-Fisherianism to escape Zero Lower Bound (ZLB) using a textbook...

The paper shows that in a New Keynesian (NK) model, an active interest rate feedback monetary policy, when combined with a Ricardian passive fiscal policy, à la Leeper-Woodford, may induce the onset of a Shilnikov chaotic attractor in the region of the parameter space where uniqueness of the...

This paper examines the two related questions: convergence of shocks in NMS to their EU counterparts through time and the effect of trade integration on distributions of shocks. The decision to adopt the euro will be associated with higher implicit costs for new EU member states (NMS) with a...