Fiscal stimulus with spending reversals /

The impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that links current stimulus to a s...

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Bibliographic Details
Call Number:Libro Electrónico
Main Authors: Corsetti, Giancarlo (Author), Meier, Andre (Author), Müller, Gernot, 1943- (Author)
Corporate Author: International Monetary Fund. European Department
Format: Electronic eBook
Language:Inglés
Published: [Washington, D.C.] : International Monetary Fund, ©2009.
Series:IMF working paper ; WP/09/106.
Subjects:
Expenditures, Public.
Fiscal policy.
Transmission mechanism (Monetary policy)
Foreign exchange rates.
Money > Tables.
Dépenses publiques.
Politique fiscale.
Mécanismes de transmission (Politique monétaire)
Taux de change.
Money
Expenditures, Public
Fiscal policy
Foreign exchange rates
tables (documents)
Tables (Data)
Tables
Tables (Données)
Online Access:Texto completo
Description
Summary:The impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that links current stimulus to a subsequent period of spending restraint. Accounting for such spending reversals brings an otherwise standard new Keynesian model in line with the stylized facts of fiscal transmission, including the crowding-in of consumption and the 'puzzle' of real exchange rate depreciation. Time series evidence f.
Physical Description:1 online resource (39 pages) : color illustrations
Bibliography:Includes bibliographical references (pages 29-32).

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