Fiscal consolidation in a currency union: spending cuts vs. tax hikes

DOI10.1016/j.jedc.2012.09.012zbMath1345.91041OpenAlexW2124074092MaRDI QIDQ311120

Christopher J. Erceg, Jesper Lindé

Publication date: 29 September 2016

Published in: Journal of Economic Dynamics \& Control (Search for Journal in Brave)

Full work available at URL: http://www.federalreserve.gov/pubs/ifdp/2012/1063/ifdp1063.pdf

zbMATH Keywords

monetary policyfiscal policyDSGE modelliquidity trapopen economy macroeconomicszero bound constraint

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64) Dynamic stochastic general equilibrium theory (91B51)

Related Items (6)

How do fiscal adjustments work? An empirical investigation ⋮ Exchange rate regimes and fiscal multipliers ⋮ Fiscal consolidation and its cross-country effects ⋮ Fiscal consolidations and heterogeneous expectations ⋮ Debt hangover in the aftermath of the Great Recession ⋮ Emigration and fiscal austerity in a depression

Cites Work

• A linear algebraic procedure for solving linear perfect foresight models
• Introducing financial frictions and unemployment into a small open economy model
• Shocks, structures or monetary policies? The euro area and US after 2001
• Fiscal policy under loose commitment
• New Keynesian versus old Keynesian government spending multipliers
• The Solution of Linear Difference Models under Rational Expectations
• An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output

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