Is fiscal policy more effective at the zero lower bound?

Is Stimulative Fiscal Policy More Effective at the Zero Lower Bound?

Several recent research efforts have found that stimulative fiscal policy — government spending or tax cuts — can have unusual effects when nominal interest ...

Fiscal Policy at the Zero Lower Bound - Intereconomics

Helps reduce inequality and other side effects of monetary policy by reducing the need for and extent of very low interest rates. To be clear: the main source ...

Is fiscal policy more effective at the zero lower bound ? | Banque de ...

Some empirical evidence suggests that the ZLB per se does not seem to increase the effects of a fiscal stimulus, while economic slack and loose monetary policy ...

Is fiscal policy more effective at the zero lower bound? - ACPR

Are the effects of a fiscal stimulus greater in situations in which central banks are stuck at the zero lower bound (ZLB)? The question is still debated in ...

Fiscal Multiplier at the Zero Bound: Evidence from Japan

We find that the stimulus effect of government spending is significantly larger and much more persistent under the ZLB than in the normal period ...

What Fiscal Policy Is Effective at Zero Interest Rates?

of the multiplier of real government spending in a much more sophisticated empirically estimated model than previous studies, taking the zero bound explicitly ...

Is stimulative fiscal policy more effective at the zero lower bound?

In particular, some studies have found that the government spending "multiplier" can be much larger at the zero lower bound. Despite these results, some caution ...

Unconventional fiscal and monetary policy at the zero lower bound

Effective macroeconomic stabilisation in the vicinity of the lower bound requires both unconventional monetary and fiscal policies.

Fiscal Policy at the Zero Lower Bound without Rational Expectations

So, the negative wealth effect of higher taxes receives relatively more weight in people's decisions, leading to a larger drop in consumer demand. The net ...

Unconventional Fiscal Policy at the Zero Bound

When the zero lower bound on nominal interest rates binds, monetary policy ... zero bound problem when policy is more generally considered to include both fiscal ...

What Fiscal Policy Is Effective at Zero Interest Rates?

But everyone starts saving more, which leads to lower demand, which in turns leads to lower income for households, thus reducing their ability to save.

Counter-cyclical fiscal rules and the zero lower bound

We analyse the effectiveness of optimal simple and implementable monetary and fiscal policy rules in stabilising economic activity, inflation and government ...

Is Stimulative Fiscal Policy More Effective at the Zero Lower Bound?

Economic Brief. EB11-08 - The Federal Reserve Bank of Richmond. Is Stimulative Fiscal Policy More Effective at the Zero Lower Bound? By Renee ...

Fiscal and Monetary Stabilization Policy at the Zero Lower Bound

Because Ricardian Equivalence no longer holds when planning horizons are finite (even when relatively long), we find that fiscal transfers can be a powerful ...

Is stimulative fiscal policy more effective at the zero lower bound?

Several recent research efforts have found that stimulative fiscal policy — government spending or tax cuts — can have unusual effects when nominal interest ...

Fiscal and monetary stabilization policy at the zero lower bound

This paper reconsiders the degree to which macroeconomic stabilization is possible when the zero lower bound is a relevant constraint on the effectiveness of ...

What kind of fiscal policy works best at the zero lower bound?

While both kinds of fiscal stimulus are effective when monetary policy is at the zero lower bound in Mehrotra's model, the feedback between ...

The effects of fiscal policy at the effective lower bound

Distinguishing between construction- and equipment-related government investments, we find that only the former raises output by significantly more when the ELB ...

Optimal fiscal and monetary policy with occasionally binding zero ...

In late 2008, the Federal Reserve effectively lowered the federal funds rate to zero. The policy rate has been at the effective zero lower bound (ZLB) since ...

Monetary policy vs. fiscal policy: Which is more effective at ...

During a recession, he explains, the longstanding consensus has been to rely on monetary policy by lowering interest rates. Once that approach ...