Some unpleasant properties of loglinearized solutions when the nominal rate is zero

• 成果类型: Article
• 署名作者: Boneva, Lena Mareen; Braun, R. Anton; Waki, Yuichiro
• 署名单位: Bank of England; Centre for Economic Policy Research - UK; Federal Reserve System - USA; Federal Reserve Bank - Atlanta; University of Queensland
• 刊物名称: JOURNAL OF MONETARY ECONOMICS
• ISSN/ISSBN: 0304-3932
• DOI: 10.1016/j.jmoneco.2016.10.012
• 发表日期: 2016
• 页码: 216-232
• 关键词: Zero lower bound; fiscal policy; new Keynesian model

摘要

Does fiscal policy have large and qualitatively different effects on the economy when the nominal interest rate is zero? An emerging consensus in the New Keynesian (NK) literature is that the answer to this question is yes. Evidence presented here suggests that the NM model's implications for fiscal policy at the zero bound may not be all that different from its implications for policy away from it. For a range of empirically relevant parameterizations, employment increases when the labor tax rate is cut and the government purchase multiplier is less than 1.05. Crown Copyright (C) 2016 Published by Elsevier B.V. All rights reserved.