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Liquidity Trap Prevention and Escape: A Simple Proposition

Cai, Junning - EconWPA - 2004

Liquidity traps occur when the natural nominal interest rate becomes negative. In a model with capital price dynamics explicitly considered, we find that shocks in the future can cause current and lasting liquidity traps. We propose that the central bank can prevent or fix liquidity traps by...

Persistent link: https://www.econbiz.de/10005561118

INFORMATION DISTORTIONS IN SOCIAL SYSTEMS: THE UNDERGROUND ECONOMY AND OTHER OBSERVER-SUBJECT-POLICYMAKER FEEDBACKS

Feige, Edgar L.; Alford, Robert R. - EconWPA - 2005

A vast array of information about economic activity, political behavior and social trends are summarized in quantitative measures, sometimes in a single number such as GDP. Because of their apparent objectivity, simplicity and universality, these measures are used as a basis for both scientific...

Persistent link: https://www.econbiz.de/10005561120

TINBERGEN AND THEIL MEET NASH: CONTROLLABILITY IN POLICY GAMES

Acocella, Nicola; Bartolomeo, Giovanni Di - EconWPA - 2005

This paper generalizes the classical theory of economic policy developed by Tinbergen and Theil to a static LQ-strategic context between n players. We show how this generalized version of controllability can profitably be used to deal with policy ineffectiveness issues and Nash equilibrium...

Persistent link: https://www.econbiz.de/10005561226

Does Stability and Growth Pact Provide an Adequate and Consistent Fiscal Rule?

Visaggio, Mauro - EconWPA - 2004

Stability and Growth Pact. First, it shows that the functional fiscal rule is adequate in ensuring the final goal of public debt … rule of Stability and Growth Pact removes the inconsistency of the previous numerical fiscal rule – arising for a given set …

Persistent link: https://www.econbiz.de/10005561239

Policy Uncertainty, Symbiosis, and the Optimal Fiscal and Monetary Conservativeness

Bartolomeo, Giovanni Di; Giuli, Francesco; manzo, Marco - EconWPA - 2005

This paper extends the stabilization game between monetary and fiscal authorities to the case of multiplicative (model) uncertainty. In this context, the “symbiosis assumption”, i.e. fiscal and monetary policy share the same ideal targets, no longer guarantees the achievement of ideal output...

Persistent link: https://www.econbiz.de/10005561308

Deficit Limits, Budget Rules and Fiscal Policy

Manasse, Paolo - EconWPA - 2005

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...

Persistent link: https://www.econbiz.de/10005561330

Inflation and Its Variation: An Alternative Explanation

Geraats, Petra M. - EconWPA - 2000

This paper introduces a general objective function for monetary policy that abandons certainty equivalence and features 'prudence'. It provides an alternative explanation for the positive relation between the level and variability of inflation, both across countries and over time. In particular,...

Persistent link: https://www.econbiz.de/10005561341

Macroeconomic co-ordination as an economic policy concept - opportunities and obstacles in the EMU

Hein, Eckhard; Truger, Achim - EconWPA - 2004

-)Keynesian analysis is presented as a growth and employment-oriented alternative to this restrictive policy mix. Contrary to the strict … alternative requires the co-ordination of monetary, fiscal and wage policies in order to achieve growth, high employment and price …

Persistent link: https://www.econbiz.de/10005126124

Buffer funding of unemployment insurance in a dynamic labour union model

Halko, Marja-Liisa - EconWPA - 2004

In this paper we study the implications of the unemployment insurance (UI) financing system on wage levels and employment when labour markets are unionised and the revenues of the firms are stochastic. We use the basic monopoly union approach of wage and employment determination and assume that...

Persistent link: https://www.econbiz.de/10005126130

Guidelines for sustained growth in the EU? The concept and consequences of the Broad Economic Policy Guidelines

Hein, Eckhard; Niechoj, Torsten - EconWPA - 2005

-member countries to the European growth and employment problems. These guidelines have been the major EU-economic policy concept for … 1990s. However, this concept has not been able to generate sustained growth and low unemployment in the EU as a whole … promises more growth and employment for Europe in the long run. …

Persistent link: https://www.econbiz.de/10005126214