Download or read book Crowding Out in Open Economies written by Emmanuela Cardia and published by Québec : Dép. d'économique, Université Laval. This book was released on 1988 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Crowding out in an inflationary open economy The Italian case written by Fiorella Padoa Schioppa and published by . This book was released on 1983 with total page 25 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Into the Open Economy written by Colin R. Turner and published by . This book was released on 2016-10-05 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: A WORLD WITHOUT MONEY. No longer a futurist utopian dream, a money-free world of true abundance, peace and fulfilment is attainable today. Find out why we need it, how it will work, why it will work, and how we get there. This book is your bite-size guide to the Open Economy.
Download or read book Government Spending Multipliers and the Zero Lower Bound in an Open Economy written by Charles Olivier Mao Takongmo and published by . This book was released on 2017 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper assesses the size of the government-spending multiplier in an open economy when the zero lower bound (ZLB) on the nominal interest rate is binding. In a theoretical framework, in a closed economy, other authors have shown that when the nominal interest rate is binding the government-spending multiplier can be very large (close to four). Their theory helps illuminate the government-spending multiplier in the ZLB, but it is difficult to match that theory with the data. We argue that, in an open economy, another channel exists for the crowding-out effect via the real exchange rate. For an open economy, the government-spending multiplier is not large owing to the appreciation of the real exchange rate, induced by the appreciation of aggregate demand that follows the increases in government spending. To test the robustness of our open economic model, we conduct the same analysis in a corresponding closed economy model. The result from our closed economy model confirms the result obtained in the other work. Our theoretical results are consistent with the results obtained in the empirical literature, which uses the vector autoregressive method and the structural vector autoregressive approach to measure the impact of government-spending shock on the real gross domestic product and revealed that the government-spending multiplier tends to be lower in open economy.
Download or read book Five Small Open Economies written by Ronald Findlay and published by World Bank Publications. This book was released on 1993 with total page 364 pages. Available in PDF, EPUB and Kindle. Book excerpt: Mauritius, a multiethnic society, has turned to manufactured exports and tourism as an alternative to reliance on sugar production. Malta overcame the shock of losing a British naval base and has grown rapidly.
Download or read book The open economy implications for monetary and fiscal policy written by Rudiger Dornbusch and published by . This book was released on 1984 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Government Spending Effects in Low income Countries written by Ms.Wenyi Shen and published by International Monetary Fund. This book was released on 2015-12-30 with total page 48 pages. Available in PDF, EPUB and Kindle. Book excerpt: Despite the voluminous literature on fiscal policy, very few papers focus on low-income countries (LICs). This paper develops a new-Keynesian small open economy model to show, analytically and through simulations, that some of the prevalent features of LICs—different types of financing including aid, the marginal efficiency of public investment, and the degree of home bias—play a key role in determining the effects of fiscal policy and related multipliers in these countries. External financing like aid increases the resource envelope of the economy, mitigating the private sector crowding out effects of government spending and pushing up the output multiplier. The same external financing, however, tends to appreciate the real exchange rate and as a result, traded output can respond quite negatively, reducing the overall output multiplier. Although capital scarcity implies high returns to public capital in LICs, declines in public investment efficiency can substantially dampen the output multiplier. Since LICs often import substantial amounts of goods, public investment may not be as effective in stimulating domestic production in the short run.
Download or read book The Effectiveness of Fiscal Policy in Stimulating Economic Activity written by Richard Hemming and published by International Monetary Fund. This book was released on 2002-12 with total page 62 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper reviews the theoretical and empirical literature on the effectiveness of fiscal policy. The focus is on the size of fiscal multipliers, and on the possibility that multipliers can turn negative (i.e., that fiscal contractions can be expansionary). The paper concludes that fiscal multipliers are overwhelmingly positive but small. However, there is some evidence of negative fiscal multipliers.
Download or read book Crowding Out in Einer Kleinen Offenen Volkswirtschaft Crowding out in a Small Open Economy written by Heinz Handler and published by . This book was released on 2019 with total page 9 pages. Available in PDF, EPUB and Kindle. Book excerpt: In a small open economy, the crowding-out effects on private demand of increasing public expenditures are different under fixed and flexible exchange rates. Differences also emerge under perfect and imperfect capital mobility as well as under full and imperfect capacity utilization. After discussing the various channels of crowding out, the case of Austria is empirically examined. Although during the 1970s the rising public debt pushed up the level of interest rates, crowding-out effects vanished towards the early 1980s because of abating capacity strains and a depreciating real effective exchange rate.
Download or read book The Government Budget Constraint and Crowding Out in a Small Open Economy written by Christopher Tsoukis and published by . This book was released on 1996 with total page 21 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book The Macroeconomic Effects of Public Investment written by Mr.Abdul Abiad and published by International Monetary Fund. This book was released on 2015-05-04 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides new evidence of the macroeconomic effects of public investment in advanced economies. Using public investment forecast errors to identify the causal effect of government investment in a sample of 17 OECD economies since 1985 and model simulations, the paper finds that increased public investment raises output, both in the short term and in the long term, crowds in private investment, and reduces unemployment. Several factors shape the macroeconomic effects of public investment. When there is economic slack and monetary accommodation, demand effects are stronger, and the public-debt-to-GDP ratio may actually decline. Public investment is also more effective in boosting output in countries with higher public investment efficiency and when it is financed by issuing debt.
Download or read book How Open is the U S Economy written by Rik W. Hafer and published by Free Press. This book was released on 1986 with total page 280 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Capital Mobility and Crowding Out in the U S Economy written by Jeffrey A. Frankel and published by . This book was released on 1985 with total page 53 pages. Available in PDF, EPUB and Kindle. Book excerpt: Conventional wisdom in the field of international finance holds that the U.S. economy has become so open financiallly as to be characterized by perfect capital mobility: a highly elastic supply of foreign capital prevents the domestic rate of return from rising significantly above the world rate of return. This view has been challenged recently by the observation that investment rates are highly correlated with national saving rates, and the claim by Feldstein and Horioka that this correlation is evidence of relatively low capital mobility.The premise of this paper is that the Feldstein-Horioka finding regarding crowding out in an open economy is strong enough to survive the econometric critiques that have been leveled against it, but that it need have nothing to do with the degree of capital mobility in the sense of the openness of financial markets and the equalization of international interest rates expressed in a common currency. It is real interest rates that matter for questions of crowding out, and real interest parity requires not just that nominal interest rates be equalized expressed in a common currency, but also that purchasing power parity hold. It is well-known that purchasing power parity does not in fact hold. Currently, for example, the dollar is expected to depreciate in real terms. Thus real interest rate parity fails and crowding out takes place because of imperfect integration of goods markets, not imperfect integration of financial markets
Download or read book Economic Policy in Theory and Practice written by Assaf Razin and published by Springer. This book was released on 1987-03-02 with total page 583 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Essays on Monetary and Fiscal Policy Interactions in Small Open Economies written by Thitima Chucherd and published by . This book was released on 2013 with total page 474 pages. Available in PDF, EPUB and Kindle. Book excerpt: This thesis addresses interactions between monetary and fiscal policies in a theoretical dynamic stochastic general equilibrium (DSGE) model of a small open economy and in an empirical model under a structural vector error correction model (SVECM). The thesis consists of three essays. The contribution is both theoretical and empirical that enables a better understanding of the complexity of interactions between monetary and fiscal policies in small open economies. The first essay examines the equilibrium determinacy under monetary and fiscal rules. The goal is to investigate how monetary and fiscal policy interactions ensure a unique and non-explosive (determinate) equilibrium for a small open economy. The study focuses when policy makers implement a set of policy mixes to address domestic output price inflation control for monetary policy, debt stabilization for fiscal policy, and joint output stabilization tasks. The result indicates that two policy schemes facilitate a determinate equilibrium. First, monetary policy actively controls inflation when fiscal policy sets a sufficient feedback on debt. Second, monetary policy becomes passive against inflation when fiscal policy is insolvent. Adding output stabilization to each rule simply causes variants of this fundamental. An interest rate rule with output stabilization can be more passive against inflation while providing a stronger response to the output gap. Fiscal policy is required to set higher feedback on debt along with its stronger counter-cyclical policy. The second essay links between the equilibrium determinacy and policy optimization. This essay provides insights into the design of policy mixes and compares determinacy outcomes between two theoretical models of a small open economy: with and without an explicit exchange rate role. This study shows that policy interactions in a small open economy with an endogenous exchange rate is quite sophisticated, especially when a monetary rule is added with an output stabilization task and/or targeted to Consumer Price Index (CPI) inflation. Additional concern for monetary policy in an open economy causes a partial offset to its reaction on domestic output price inflation that weakens its effect on the real debt burden. To minimize economic fluctuations, policy makers should mute the role of output stabilization for monetary policy, and set minimum feedback on debt that is compatible with the degree of counter-cyclical fiscal policy. Substantially active response to inflation is satisfactory for monetary policy with CPI inflation targeting. The third essay empirically presents monetary and fiscal policy interactions in Thailand's SVECM suggested by a theoretical DSGE model developed from the previous essays. This essay shows that the DSGE-SVECM model can be supported by Thai data. A shock to monetary policy is effective with a lag. Government spending policy is also effective with a lag and some crowding-out effects on output. An adverse shock in tax policy unexpectedly stimulates the economy, indicating room for enhancing economic growth by relaxing revenue constraint. Monetary policy is mainly implemented to correct a consequence of a fiscal shock on inflation (and also the domestic and foreign shocks), while fiscal policy appears to counter a consequence of the monetary policy shock on output.
Download or read book Useful Government Spending Direct Crowding Out and Fiscal Policy Interdependence written by and published by . This book was released on with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: The Department of Economics of the University of Warwick presents the full text of the research paper entitled "Useful Government Spending, Direct Crowding-Out and Fiscal Policy Interdependence," by Giovanni Ganelli that was published in January 2000. The paper is in PDF format. Ganelli discusses private and public consumption in a dynamic, open economy with imperfect competition and normal rigidities. The author offers an economic model in which government expenditure affects utility. Results show that the introduction of useful government spending tends to reduce consumption following domestic and foreign permanent expansions.
Download or read book Economic Dignity written by Gene Sperling and published by Penguin. This book was released on 2021-10-12 with total page 385 pages. Available in PDF, EPUB and Kindle. Book excerpt: “Timely and important . . . It should be our North Star for the recovery and beyond.” —Hillary Clinton “Sperling makes a forceful case that only by speaking to matters of the spirit can liberals root their belief in economic justice in people’s deepest aspirations—in their sense of purpose and self-worth.” —The New York Times When Gene Sperling was in charge of coordinating economic policy in the Obama White House, he found himself surprised when serious people in Washington told him that the Obama focus on health care was a distraction because it was “not focused on the economy.” How, he asked, was the fear felt by millions of Americans of being one serious illness away from financial ruin not considered an economic issue? Too often, Sperling found that we measured economic success by metrics like GDP instead of whether the economy was succeeding in lifting up the sense of meaning, purpose, fulfillment, and security of people. In Economic Dignity, Sperling frames the way forward in a time of wrenching change and offers a vision of an economy whose guiding light is the promotion of dignity for all Americans.
