The effects of a money-financed fiscal stimulus

• 成果类型: Article
• 署名作者: Gali, Jordi
• 署名单位: Pompeu Fabra University; Centre de Recerca en Economia Internacional (CREI)
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2019.08.002
• 发表日期: 2020
• 页码: 1-19
• 关键词: Seignorage; Government spending; Fiscal multipliers; Helicopter drop

摘要

I analyze the effects of a money-financed fiscal stimulus and compare them with those resulting from a conventional debt-financed stimulus. I study the effects of both a tax cut and an increase in government purchases, with and without a binding zero lower bound (ZLB) on the nominal interest rate. When the ZLB is not binding, a money-financed fiscal stimulus is shown to have much larger multipliers than a debt-financed fiscal stimulus. That difference in effectiveness persists, but is much smaller, under a binding ZLB. Nominal rigidities are shown to play a major role in shaping those effects. (c) 2019 Elsevier B.V. All rights reserved.