Optimal government spending at the zero lower bound: A non-Ricardian analysis
نویسندگان
چکیده
منابع مشابه
Government Spending Multipliers under Zero Lower Bound: Evidence from Japan∗
Using a rich data set on government spending forecasts, we estimate the effects of unexpected government spending both when the nominal interest rate is near zero lower bound (ZLB) and outside of ZLB period in Japan. The output multiplier is 1.5 on impact in the ZLB period while it is 0.7 outside of the ZLB period. We argue that this result is not driven by the amount of slack in the economy. W...
متن کاملGovernment Spending Multipliers under the Zero Lower Bound: Evidence from Japan
Using a rich data set on government spending forecasts, we estimate the effects of unexpected government spending both when the nominal interest rate is near zero lower bound (ZLB) and outside of the ZLB period in Japan. The output multiplier is 1.5 on impact in the ZLB period, while it is 0.7 outside of the ZLB period. We estimate that the government spending shocks increase both private consu...
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In the standard New Keynesian model, monetary policy is often described by an interest rate rule (e.g. a Taylor rule) that moves the interest rate in response to deviations of inflation and some measure of economic activity from target. Nominal interest rates are bound from below by 0 – since money is storable, one would never accept a negative nominal return. How does the behavior of the NK mo...
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ژورنال
عنوان ژورنال: Review of Economic Dynamics
سال: 2017
ISSN: 1094-2025
DOI: 10.1016/j.red.2016.11.001