05672oam 22011534 450 991097077960332120250426110905.0978661284321197814623295401462329543978145278336914527833659781282843219128284321497814518725381451872534(CKB)3170000000055258(EBL)1608278(SSID)ssj0000940830(PQKBManifestationID)11518144(PQKBTitleCode)TC0000940830(PQKBWorkID)10955613(PQKB)10162045(OCoLC)645463668(IMF)WPIEE2009106(MiAaPQ)EBC1608278(IMF)WPIEA2009106WPIEA2009106(EXLCZ)99317000000005525820020129d2009 uf 0engur|n|---|||||txtccrFiscal Stimulus with Spending Reversals /Gernot Müller, Giancarlo Corsetti, Andre Meier1st ed.Washington, D.C. :International Monetary Fund,2009.1 online resource (41 p.)IMF Working PapersDescription based upon print version of record.9781451916836 1451916833 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 BankingimfCurrencyimfExpenditureimfExpenditures, PublicimfFinanceimfFiscal PolicyimfFiscal policyimfForeign ExchangeimfForeign exchangeimfInterest ratesimfInterest Rates: Determination, Term Structure, and EffectsimfLong term interest ratesimfMacroeconomicsimfNational Government Expenditures and Related Policies: GeneralimfPublic finance & taxationimfPublic FinanceimfReal exchange ratesimfReal interest ratesimfUnited StatesimfExpenditures, Public.Fiscal policy.Banks and BankingCurrencyExpenditureExpenditures, PublicFinanceFiscal PolicyFiscal policyForeign ExchangeForeign exchangeInterest ratesInterest Rates: Determination, Term Structure, and EffectsLong term interest ratesMacroeconomicsNational Government Expenditures and Related Policies: GeneralPublic finance & taxationPublic FinanceReal exchange ratesReal interest rates332.1Müller Gernot1815874Corsetti Giancarlo122773Meier Andre862014DcWaIMFBOOK9910970779603321Fiscal Stimulus with Spending Reversals4372556UNINA