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Keywords:Fiscal policy 

Working Paper
Asymmetric shocks in a currency union with monetary and fiscal handcuffs?

This paper investigates the impact of the asymmetric shocks within a currency union in a framework that takes account of the zero bound constraint on policy rates, and also allows for constraints on fiscal policy. In this environment, we document that the usual optimal currency argument showing that the effects of shocks are mitigated to the extent that they are common across member states can be reversed. Countries can be worse off when their neighbors experience similar shocks, including policy-driven reductions in government spending.
International Finance Discussion Papers , Paper 1012

Working Paper
The role of fiscal policy in an incomplete markets framework

A general-equilibrium model is developed to highlight the link between neo-Keynesian models of unemployment and recent results on the constrained suboptimality of competitive economies with incomplete asset markets. Although the model deviates from the Arrow-Debreu paradigm only by the absence of some contingent claims, the competitive equilibrium exhibits underemployment and balanced-budget fiscal policies have Keynesian effects which are Pareto improving.
International Finance Discussion Papers , Paper 451

Working Paper
The time consistency of monetary and fiscal policies

Are optimal monetary and fiscal policies time consistent in a monetary economy? Yes, but if and only if under commitment the Friedman rule of setting nominal interest rates to zero is optimal. This result is of applied interest because the Friedman rule is optimal for the standard preferences used in applied work, those consistent with the growth facts. (Replaced by Staff Report No: 305)
Working Papers , Paper 616

Conference Paper
Some welfare costs of monetary and fiscal policy

Proceedings

Journal Article
The near-term outlook for fiscal policy

Economic Policy Review , Issue Apr , Pages 77-80

Conference Paper
Budget deficits and debt: issues and options (general discussion)

Proceedings - Economic Policy Symposium - Jackson Hole

Conference Paper
Estimating the effects of fiscal policy in OECD countries

This paper studies the effects of fiscal policy on GDP, inflation and interest rates in 5 OECD countries, using a structural Vector Autoregression approach. Its main results can be summarized as follows: 1) The effects of fiscal policy on GDP tend to be small: government spending multipliers larger than 1 can be estimated only in the US in the pre-1980 period. 2) There is no evidence that tax cuts work faster or more effectively than spending increases. 3) The effects of government spending shocks and tax cuts on GDP and its components have become substantially weaker over time; in the ...
Proceedings

Conference Paper
Estimating the effects of fiscal policy in OECD countries - comments

Proceedings

Discussion Paper
Changes in State Unemployment Insurance Rules during the COVID-19 Outbreak in the U.S.

The COVID-19 pandemic led to an unprecedented expansion in unemployment insurance (UI) eligibility across states. While more than forty states had modified UI rules by the end of March, not all states responded in the same way. In this article, I summarize the changes to state UI rules in response to the crisis and explore factors that have contributed to the variation in states’ responses.
Policy Hub , Paper 2020-2

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