U.S. monetary-fiscal regime changes in the presence of endogenous feedback in policy rules / Yoosoon Chang, Boreum Kwak
Loading...
Download1.06 MB
U.S. monetary-fiscal regime changes in the presence of endogenous feedback in policy rules
Discovery
88953277X
URN
urn:nbn:de:gbv:3:2-73649
DOI
ISBN
ISSN
Koordinaten
Skalierung
dc.contributor.contributor
Other contributor
Publication history
Halle (Saale), Germany : Halle Institute for Economic Research (IWH), June 2017
Content
1 Online-Ressource (III, 52 Seiten, 1,06 MB) : Diagramme
Edition
Language
eng
Comment
Abstract
We investigate U.S. monetary and fiscal policy regime interactions in a model, where regimes are determined by latent autoregressive policy factors with endogenous feedback. Policy regimes interact strongly: Shocks that switch one policy from active to passive tend to induce the other policy to switch from passive to active, consistently with existence of a unique equilibrium, though both policies are active and government debt grows rapidly in some periods. We observe relatively strong interactions between monetary and fiscal policy regimes after the recent financial crisis. Finally, latent policy regime factors exhibit patterns of correlation with macroeconomic time series, suggesting that policy regime change is endogenous.
Series
IWH-Diskussionspapiere ; 2017, no. 15 ppn:837399270