dc.contributor.author | CORSETTI, Giancarlo | |
dc.contributor.author | KUESTER, Keith | |
dc.contributor.author | MEIER, André | |
dc.contributor.author | MÜLLER, Gernot J. | |
dc.date.accessioned | 2010-02-09T16:14:27Z | |
dc.date.available | 2010-02-09T16:14:27Z | |
dc.date.issued | 2010 | |
dc.identifier.issn | 1725-6704 | |
dc.identifier.uri | https://hdl.handle.net/1814/13223 | |
dc.description.abstract | The global financial crisis of 2008–09 has sent public debt on sharply
higher trajectories. With the economic recovery gradually taking hold, the
focus is now shifting to fiscal “exit” strategies. Medium-term consolidation
efforts are likely to include not only tax increases but also sizeable spending
cuts. Our paper uses a standard new Keynesian model to show that the anticipation
of such medium-term spending cuts generally enhances the expansionary
effect of short-run fiscal stimulus. This conclusion still applies when
monetary policy is constrained by the zero lower bound on policy rates. In
this case, however, the reversal of government spending must not occur too
early on the recovery path, or at least must be suitably gradual. | en |
dc.format.mimetype | application/pdf | |
dc.language.iso | en | en |
dc.relation.ispartofseries | EUI ECO | en |
dc.relation.ispartofseries | 2010/03 | en |
dc.rights | info:eu-repo/semantics/openAccess | |
dc.subject | Fiscal policy | en |
dc.subject | fiscal stabilization | en |
dc.subject | fiscal multiplier | en |
dc.subject | exit strategy | en |
dc.subject | consolidation | en |
dc.subject | monetary policy | en |
dc.subject | zero lower bound | en |
dc.subject | E63 | en |
dc.subject | E62 | en |
dc.subject | E52 | en |
dc.title | Debt Consolidation and Fiscal Stabilization of Deep Recessions | en |
dc.type | Working Paper | en |
dc.neeo.contributor | MEIER|André|aut| | |
dc.neeo.contributor | MÜLLER|Gernot J.|aut| | |
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