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
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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:184:y:2019:i:c:s016517651930312x

DOI: 10.1016/j.econlet.2019.108634

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