Economics at your fingertips  

Was the New Deal expansionary?

Yangyang Ji and Wei Xiao

Economics Letters, 2019, vol. 184, issue C

Abstract: When wages are sticky and the interest rate hits the zero lower bound (ZLB), the expansionary effect of New Deal policies is drastically reduced. If the duration of the policies mismatches that of the ZLB, the effect can be contractionary.

Keywords: New deal; Sticky wages; Zero lower bound (search for similar items in EconPapers)
JEL-codes: E32 E52 E62 N12 (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc

Downloads: (external link)
Full text for ScienceDirect subscribers only

Related works:
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:

DOI: 10.1016/j.econlet.2019.108634

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().

Page updated 2024-03-31
Handle: RePEc:eee:ecolet:v:184:y:2019:i:c:s016517651930312x