Showing 1 - 10 of 98
Persistent link: https://www.econbiz.de/10003589786
The paper presents a simple model for discussing the effects of deficit limits and budget rules on fiscal policy. I find that limits on deficit-output ratios provide incentives to implement procyclical policies when the economy is in intermediate states, and countercyclical policies only in very...
Persistent link: https://www.econbiz.de/10014400738
We propose a model of the interbank money market with an explicit role for central bank intervention and periodic reserve requirements, and study the interaction of profit-maximizing banks with a central bank targeting interest rates at high frequency. The model yields predictions on biweekly...
Persistent link: https://www.econbiz.de/10014399599
This paper proposes a signaling model that offers a new perspective on why governments deviate from optimal tax smoothing and delay debt stabilization. In our model, dependable—but not fully credible—governments have an incentive to tighten the fiscal regime when the signaling effect on...
Persistent link: https://www.econbiz.de/10014400094
Several papers argue that debt crises can be the result of self-fulfilling expectations that no one will lend to a country. I show this type of coordination failure can be eliminated by a combination of state-contingent securities and a mechanism that allows investors to promise to lend only if...
Persistent link: https://www.econbiz.de/10014401322
Persistent link: https://www.econbiz.de/10001066647
Persistent link: https://www.econbiz.de/10001200757
Persistent link: https://www.econbiz.de/10003589878
Persistent link: https://www.econbiz.de/10015122553
Persistent link: https://www.econbiz.de/10001395686