MacManus, Richard
Expansionary contractions and fiscal free lunches too good to be true ? / Richard McManus, Gulcin Ozkan, Dawid Trzeciakiewicz .-- , 2019
Resumen.
Bibliografía.
This paper builds a framework to jointly examine the possibilities of both expansionary fiscal contractions (austerity increasing output) and fiscal free lunches (expansions reducing gover nment debt), arguments which in recent debates have been suppor ted by the austerity and stimulus camps, respectively. We propose a new metric quantifying the budgetary implications of
fiscal action, a key aspect of fiscal policy particularly at the monetary zero lower bound. We find that austerity needs to be highly persistent and credible in order to be expansionary, and stimulus needs to be temporary, responsive, and well-targeted in order to lower debt. We conclude that neither is likely, especially during periods of economic distress.
POLITICA FISCAL
ECONOMIAS DE ESCALA
MODELOS ECONOMETRICOS
Özkan, F. Gülçin
Trzeciakiewicz, Dawid
The Scandinavian Journal of Economics 0347-0520 v. 121, n. 1, 2019, p. 32-54
Expansionary contractions and fiscal free lunches too good to be true ? / Richard McManus, Gulcin Ozkan, Dawid Trzeciakiewicz .-- , 2019
Resumen.
Bibliografía.
This paper builds a framework to jointly examine the possibilities of both expansionary fiscal contractions (austerity increasing output) and fiscal free lunches (expansions reducing gover nment debt), arguments which in recent debates have been suppor ted by the austerity and stimulus camps, respectively. We propose a new metric quantifying the budgetary implications of
fiscal action, a key aspect of fiscal policy particularly at the monetary zero lower bound. We find that austerity needs to be highly persistent and credible in order to be expansionary, and stimulus needs to be temporary, responsive, and well-targeted in order to lower debt. We conclude that neither is likely, especially during periods of economic distress.
POLITICA FISCAL
ECONOMIAS DE ESCALA
MODELOS ECONOMETRICOS
Özkan, F. Gülçin
Trzeciakiewicz, Dawid
The Scandinavian Journal of Economics 0347-0520 v. 121, n. 1, 2019, p. 32-54