New Keynesian Liquidity Trap and Conventional Fiscal Stance: An Estimated DSGE Model
نویسندگان
چکیده
منابع مشابه
The New-Keynesian Liquidity Trap
In standard solutions, the new-Keynesian model produces a deep recession with deflation in a liquidity trap. The model also makes unusual policy predictions: Useless government spending, technical regress, and capital destruction have large multipliers. These predictions become larger as prices become less sticky. I show that both data and policy predictions are strongly affected by equilibrium...
متن کاملThe financial accelerator in an estimated New Keynesian model ✩
This paper estimates and simulates a sticky-price dynamic stochastic general-equilibrium model with a financial accelerator, à la Bernanke et al. [Bernanke, B., Gertler, M., Gilchrist, S., 1999. The financial accelerator in a quantitative business cycle framework. In: Handbook of Macroeconomics. North-Holland, Amsterdam], to assess the importance of the financial accelerator mechanism in fittin...
متن کاملFiscal Policy in an Expectations Driven Liquidity Trap∗
In the basic New Keynesian model in which the monetary authority operates a Taylor rule, multiple rational expectations equilibria arise, some of which display all the features of a liquidity trap. We show that a loss in confidence can set the economy on a deflationary path that eventually prevents the monetary authority from adjusting the interest rate and can lead to potentially very large ou...
متن کاملUnexpected Banking Loan Losses in an Estimated DSGE Model
In spite of realizing more loss than expected and reserved provision in loaning process, some of our banks avoid recognizing the losses, through extension of the loan contracts and consequently do not shift the realized losses to their capital. With this in mind, the major objective of this study is to design a frame-work, through which we can explain the differences between the results of t...
متن کاملThe new-Keynesian Liqudity Trap
In standard solutions, the new-Keynesian model produces a deep recession with deflation in a liquidity trap. Useless government spending, technical regress, and capital destruction have large positive multipliers. The recession, deflation and policy paradoxes are larger when prices are less sticky. I show that these features are all artifacts of equilibrium selection. For the same interest-rate...
متن کاملذخیره در منابع من
با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید
ژورنال
عنوان ژورنال: Economics and Business
سال: 2019
ISSN: 2256-0394,1407-7337
DOI: 10.2478/eb-2019-0011