Some unpleasant properties of loglinearized solutions when the nominal rate is zero
R. Braun,
Lena Mareen Korber and
Yuichiro Waki
Authors registered in the RePEc Author Service: Lena Boneva
No 2012-05, FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta
Abstract:
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 NK 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.
Keywords: zero lower bound; fiscal policy; New Keynesian models (search for similar items in EconPapers)
JEL-codes: E52 E62 (search for similar items in EconPapers)
Pages: 69 pages
Date: 2012
New Economics Papers: this item is included in nep-cba, nep-dge and nep-mac
References: Add references at CitEc
Citations: View citations in EconPapers (85)
Downloads: (external link)
https://www.atl.frb.org/-/media/Documents/research ... 12/wp1205b.pdf?la=en Full text (application/pdf)
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.atl.frb.org:443 (No such host is known. )
Related works:
Journal Article: Some unpleasant properties of loglinearized solutions when the nominal rate is zero (2016)
Working Paper: Some Unpleasant Properties of Loglinearized Solutions When the Nominal Rate is Zero (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
HTML/Text
Persistent link: https://EconPapers.repec.org/RePEc:fip:fedawp:2012-05
Ordering information: This working paper can be ordered from
pubs@frbatlanta.org
Access Statistics for this paper
More papers in FRB Atlanta Working Paper from Federal Reserve Bank of Atlanta Contact information at EDIRC.
Bibliographic data for series maintained by Rob Sarwark (rob.sarwark@atl.frb.org).