05431oam 22010454 450 991078833560332120230721045657.01-4623-2954-31-4527-8336-597866128432111-282-84321-41-4518-7253-4(CKB)3170000000055258(EBL)1608278(SSID)ssj0000940830(PQKBManifestationID)11518144(PQKBTitleCode)TC0000940830(PQKBWorkID)10955613(PQKB)10162045(OCoLC)645463668(MiAaPQ)EBC1608278(IMF)WPIEE2009106(EXLCZ)99317000000005525820020129d2009 uf 0engur|n|---|||||txtccrFiscal Stimulus with Spending Reversals /Gernot Müller, Giancarlo Corsetti, Andre MeierWashington, D.C. :International Monetary Fund,2009.1 online resource (41 p.)IMF Working PapersDescription based upon print version of record.1-4519-1683-3 Includes bibliographical references.Contents; I. Introduction; II. Model; A. Final Good Firms; B. Intermediate Good Firms; C. Households; D. Government; E. Equilibrium; III. Fiscal Policy Transmission with Spending Reversals; A. Parameterization; Tables; 1. Parameterization of the Model; B. Quantitative Analysis; Figures; 1. Effect of Government Spending Shocks: Sticky Price vs. Flexible Price Allocation; 2. Effect of Government Spending Shocks: Debt-Stabilizing vs. Debt- Insensitive Spending Rule; 3. Effect of Government Spending Shocks: Model with Limited Participation in Asset Markets; IV. Time Series EvidenceA. VAR SpecificationB. Results; 4. Fiscal Policy Transmission According to VAR Model: Effects of VAR Shock; 5. Fiscal Policy Transmission According to VAR Model: Effects of Military Event; V. Conclusion; References; Appendices; I. More Simulation Results; Appendix Figures; A.1. Effect of Government Spending Shocks: Debt-Stabilizing vs. Debt- Insensitive Government Spending under Complete Markets; A.2. Effects of Government Spending Shocks: High Debt Elasticity of Interest Rates vs. Baseline; II. Data; III. Sensitivity Analysis of VAR ResultsA.3. Fiscal Policy Transmission According to VAR Model: Effects of VAR Shock. Sensitivity AnalysisA.4. Fiscal Policy Transmission According to VAR Model: Effects of Military Event. Sensitivity Analysis; A.5. Fiscal Policy Transmission According to VAR Model: Effects of VAR Shock in Nominal VAR; A.6. Fiscal Policy Transmission According to VAR Model: Effects of Military Event in Nominal VARThe impact of fiscal stimulus depends not only on short-term tax and spending policies, but also on expectations about offsetting measures in the future. This paper analyzes the effects of an increase in government spending under a plausible debt-stabilizing policy that links current stimulus to a subsequent period of spending restraint. Accounting for such spending reversals brings an otherwise standard new Keynesian model in line with the stylized facts of fiscal transmission, including the crowding-in of consumption and the 'puzzle' of real exchange rate depreciation. Time series evidence for the U.S. supports the empirical relevance of spending reversals.IMF Working Papers; Working Paper ;No. 2009/106Expenditures, PublicFiscal policyBanks and BankingimfForeign ExchangeimfPublic FinanceimfNational Government Expenditures and Related Policies: GeneralimfInterest Rates: Determination, Term Structure, and EffectsimfFiscal PolicyimfPublic finance & taxationimfFinanceimfCurrencyimfForeign exchangeimfMacroeconomicsimfExpenditureimfReal exchange ratesimfReal interest ratesimfLong term interest ratesimfFiscal policyimfExpenditures, PublicimfInterest ratesimfUnited StatesimfExpenditures, Public.Fiscal policy.Banks and BankingForeign ExchangePublic FinanceNational Government Expenditures and Related Policies: GeneralInterest Rates: Determination, Term Structure, and EffectsFiscal PolicyPublic finance & taxationFinanceCurrencyForeign exchangeMacroeconomicsExpenditureReal exchange ratesReal interest ratesLong term interest ratesFiscal policyExpenditures, PublicInterest ratesMüller Gernot1472690Corsetti Giancarlo122773Meier Andre862014DcWaIMFBOOK9910788335603321Fiscal Stimulus with Spending Reversals3685561UNINA