The new open economy macroeconomics of government debt

被引:38
作者
Ganelli, G [1 ]
机构
[1] Int Monetary Fund, Fiscal Affairs Dept, Washington, DC 20431 USA
关键词
fiscal policy; overlapping generations; New Open Economy Macroeconomics; debt; tax cut;
D O I
10.1016/j.jinteco.2004.03.001
中图分类号
F [经济];
学科分类号
02 ;
摘要
In this paper we introduce an overlapping generations structure of the Blanchard (J. Polit. Econ. 93 (1985) 121) type in a New Open Economy Macroeconomics (NOEM) model. This allows us to study a wider range of fiscal shocks compared to the traditional Mundell-Fleming (MF) and to the baseline Redux models. We show that a debt-financed tax cut appreciates the short-tun exchange rate, but this result is reversed in the long run. A debt-financed increase of government spending, on the other hand, has ambiguous exchange rate effects. Our model also provides a bridge between the NOEM framework and the MF model. (C) 2004 Elsevier B.V. All rights reserved.
引用
收藏
页码:167 / 184
页数:18
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