Alternative Modes of Deficit Financing and Endogenous Monetary and Fiscal Policy 1923-1982

Stephen J Turnovsky

No 2123, NBER Working Papers from National Bureau of Economic Research, Inc

Abstract: This paper first investigates the effects of alternatives modes of deficit financing on the unemployment rate, inflation rate, and the real interest rate, within the framework of a small complete macroeconomic model. Secondly, it examines the nature of monetary and fiscal reaction functions. The two periods 1923- 1960 and 1961-1982 are considered, with substantial differences in behavior and policy being shown to exist between them The most important conclusion is that long-run monetary neutrality properties shown to exist over the latter period are not intrinsic to the economy, but rather are the result of the stabilization policies being conducted over that period.

Date: 1987-01
Note: ME
References: View references in EconPapers View complete reference list from CitEc
Citations:

Published as Turnovsky, Stephen J. and Mark Wohar. "Alternative Modes of Deficit Financing and Endogenous Monetary and Fiscal Policy 1923-1982," Journal of Applied Econometrics, Vol. 2, No. 1, February 1987, pp. 1-25.

Downloads: (external link)
http://www.nber.org/papers/w2123.pdf (application/pdf)

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: https://EconPapers.repec.org/RePEc:nbr:nberwo:2123

Ordering information: This working paper can be ordered from
http://www.nber.org/papers/w2123

Access Statistics for this paper

More papers in NBER Working Papers from National Bureau of Economic Research, Inc National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.. Contact information at EDIRC.
Bibliographic data for series maintained by (wpc@nber.org).