EconPapers    
Economics at your fingertips  
 

The New Open Economy Macroeconomics of Government Debt

Giovanni Ganelli ()

No 83, Royal Economic Society Annual Conference 2003 from Royal Economic Society

Abstract: In this paper we introduce an overlapping generations structure of the Blanchard (1985) type in a New Open Economy Macroeconomics model. This allows us to study a wider range of fiscal shocks compared to the traditional Mundell-Fleming and to the baseline Redux (Obstfeld and Rogoff 1995, 1996) models. One important policy implication of our model is that the tax cut implemented in the US in 2001 might have contributed to the appreciation of the Dollar vis-a-vis the Euro. In contrast, the imposition of fiscal constraints such as the ``Golden Rule'' proposed by the UK government can have opposite exchange rate effects.

Keywords: Overlapping generations; new open economy macroeconomics; debt; tax cut (search for similar items in EconPapers)
JEL-codes: F41 F31 H63 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-ifn
Date: 2003-06-04
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8) Track citations by RSS feed

Downloads: (external link)
http://repec.org/res2003/Ganelli.pdf full text

Related works:
Journal Article: The new open economy macroeconomics of government debt (2005) Downloads
Working Paper: The New Open Economy Macroeconomics of Government Debt (2002) Downloads
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:ecj:ac2003:83

Access Statistics for this paper

More papers in Royal Economic Society Annual Conference 2003 from Royal Economic Society Contact information at EDIRC.
Bibliographic data for series maintained by Christopher F. Baum ().

 
Page updated 2019-10-03
Handle: RePEc:ecj:ac2003:83