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Fiscal Multipliers at the Zero Lower Bound : The Role of Policy Inertia

Hills, Timothy - 2015

multiplier nontrivially when the policy rate is constrained at the zero lower bound (ZLB). In the economy with policy inertia … the recession via expectations. In our baseline calibration, the output multiplier at the ZLB is 2.5 when the weight on …

Persistent link: https://www.econbiz.de/10013031117

Sticky Wages, Monetary Policy and Fiscal Policy Multipliers

Dupor, Bill - 2019

This paper demonstrates how adding nominal wage rigidity to a standard sticky price model can create a mechanism by which increases in government spending cause increases in consumption. The increase in output arising from government purchases puts upward pressure on the price level. At a fixed...

Persistent link: https://www.econbiz.de/10013210473

Fiscal Policy in the EU in the Crisis : A Model-Based Approach

Székely, István P. - 2019

This paper uses a multi region DSGE model with collateral constrained households and residential investment to examine the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which differ by the type of budgetary measure, its length, the...

Persistent link: https://www.econbiz.de/10012905916

Fiscal policy in the EU in the crisis : a model-based approach

Székely, István P.; Röger, Werner; Veld, Jan in 't - 2011

Policy ; Monetary Policy ; Fiscal Multiplier ; Collateral Constraint ; DSGE modelling …

Persistent link: https://www.econbiz.de/10008906582

Fiscal multiplier in a credit-constrained new Keynesian economy

Karatas, Engin; Sin, Jasmin - 2012

Persistent link: https://www.econbiz.de/10010219865

Understanding HANK : insights from a PRANK

Acharya, Sushant; Dogra, Keshav - 2018

Does market incompleteness radically transform the properties of monetary economies? Using an analytically tractable heterogeneous agent New Keynesian (HANK) model, we show that whether incomplete markets resolve "policy paradoxes" in the representative agent New Keynesian model (RANK) depends...

Persistent link: https://www.econbiz.de/10011795425

Clearing Up the Fiscal Multiplier Morass

Leeper, Eric M. - 2015

We use Bayesian prior and posterior analysis of a monetary DSGE model, extended to include fiscal details and two distinct monetary-fiscal policy regimes, to quantify government spending multipliers in U.S. data. The combination of model specification, observable data, and relatively diffuse...

Persistent link: https://www.econbiz.de/10013018514

Covid-19 : has the time come for mainstream macroeconomics to rehabilitate money printing?

Arquié, Axelle; Héricourt, Jérôme; Tripier, Fabien - 2020

The scale of public expenditure to be incurred in the Covid-19 health crisis is raising heated debates about the appropriate funding. Long rejected by mainstream macroeconomics due to its possible inflationary consequences, monetization is currently undergoing a surprising rehabilitation....

Persistent link: https://www.econbiz.de/10012233283

Fiscal multipliers and the choice of zero lower bound modeling

Siemsen, Thomas; Watzka, Sebastian - 2013

multiplier. To this end we contrast two different ways to implement the ZLB in a New Keynesian model: the ZLB modeled as an … multiplier are not only due to differences in the timing assumption of government spending but also driven by the choice of the … ZLB modeling. Ceteris paribus, the impact multiplier is higher if the ZLB is modeled appropriately as a constraint. …

Persistent link: https://www.econbiz.de/10009772911

A medium-sized, open-economy, fiscal DSGE model of South Africa

Kemp, Johannes Hermanus; Hollander, Hylton - 2020

Much of the research on fiscal multipliers has used reduced form modelling approaches. While these models have been extended to include richer controls and identification approaches, it remains unclear whether shocks identified capture the true structural shocks. An alternative way to identify...

Persistent link: https://www.econbiz.de/10012241962