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Fiscal policy, pricing frictions and monetary accommodation

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dc.contributor.author Canova, Fabio
dc.contributor.author Pappa, Evi
dc.contributor.other Universitat Pompeu Fabra. Departament d'Economia i Empresa
dc.date.accessioned 2017-07-26T10:50:31Z
dc.date.available 2017-07-26T10:50:31Z
dc.date.issued 2011-03-01
dc.identifier https://econ-papers.upf.edu/ca/paper.php?id=1268
dc.identifier.citation Economic Policy, 68, 555-598, 2011
dc.identifier.uri http://hdl.handle.net/10230/19884
dc.description.abstract We investigate the theoretical conditions for effectiveness of government consumption expenditure expansions using US, Euro area and UK data. Fiscal expansions taking place when monetary policy is accommodative lead to large output multipliers in normal times. The 2009-2010 packages need not produce significant output multipliers, may have moderate debt effects, and only generate temporary inflation. Expenditure expansions accompanied by deficit/debt consolidations schemes may lead to short run output gains but their success depends on how monetary policy and expectations behave. Trade openness and the cyclicality of the labor wedge explain cross-country differences in the magnitude of the multipliers.
dc.format.mimetype application/pdf
dc.language.iso eng
dc.relation.ispartofseries Economics and Business Working Papers Series; 1268
dc.rights L'accés als continguts d'aquest document queda condicionat a l'acceptació de les condicions d'ús establertes per la següent llicència Creative Commons
dc.rights.uri http://creativecommons.org/licenses/by-nc-nd/3.0/es/
dc.title Fiscal policy, pricing frictions and monetary accommodation
dc.type info:eu-repo/semantics/workingPaper
dc.date.modified 2017-07-23T02:13:50Z
dc.subject.keyword government consumption expenditure shocks; pricing frictions; monetary policy accommodation; debt and inflation dynamics
dc.subject.keyword Macroeconomics and International Economics
dc.rights.accessRights info:eu-repo/semantics/openAccess


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