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dc.contributor.authorKara, E
dc.contributor.authorSin, J
dc.date.accessioned2017-02-28T13:50:06Z
dc.date.issued2016-07-11
dc.description.abstractWe study the effects of fiscal policy on the macroeconomy using a liquidity constrained New Keynesian model in which government bonds are liquid and private financial assets are only partially liquid. We find that the fiscal multipliers in this economic environment are large enough for fiscal policy to be highly effective. In this model, a bond-financed fiscal expansion can stimulate output since higher public borrowing improves liquidity by increasing the proportion of liquid assets in private-sector wealth.en_GB
dc.identifier.citationVol. 120 (1), pp. 93-123en_GB
dc.identifier.doi10.1111/sjoe.12208
dc.identifier.urihttp://hdl.handle.net/10871/26123
dc.language.isoenen_GB
dc.publisherWileyen_GB
dc.rights.embargoreasonUnder embargo until 12 July 2018 in compliance with publisher policyen_GB
dc.rights© The editors of The Scandinavian Journal of Economics 2016
dc.subjectDSGE modelsen_GB
dc.subjectmonetary policyen_GB
dc.subjectfiscal policyen_GB
dc.subjectliquidity trapen_GB
dc.subjectcredit constraintsen_GB
dc.titleThe Fiscal Multiplier in a Liquidity Constrained New Keynesian Economyen_GB
dc.typeArticleen_GB
dc.identifier.issn0347-0520
dc.descriptionThis is the author accepted manuscript. The final version is available from Wiley via the DOI in this record.en_GB
dc.identifier.eissn1467-9442
dc.identifier.journalThe Scandinavian Journal of Economicsen_GB
rioxxterms.versionAM
refterms.dateFCD2017-02-28T08:33:55.523
refterms.versionFCDAM


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