According to the expectations channel, a fiscal consolidation may give rise to less contractionary, or even expansionary effects on consumption, despite a decline in current disposable income. Intuitively, people may accumulate a stock of savings in anticipation of the consolidation and may...

In dieser Studie werden die Effekte von Geld- und Fiskalpolitik auf Konsumentenerwartungen in Szenarien von hohem und niedrigem öffentlichen Schuldenstand empirisch untersucht. In Reaktion auf einen Anstieg der Staatsausgaben steigen Konsumpläne bei niedrigem, fallen jedoch bei hohem...

This paper empirically quantifies the importance of fiscal policy in shaping the monetary policy transmission mechanism and derives implications for monetary-fiscal interactions. First, we document that a contractionary monetary policy shock, besides lowering output and prices, leads to a...

We analyze the influence of the fiscal position on the transmission of government spending shocks in a New Keynesian model. We find that once we allow for positive levels of government debt in the steady state, the sign and the size of the fiscal multiplier depend strongly on the horizon at...