A Buffer Stock Model for the Government Balancing Stability and Sustainability is popular PDF and ePub book, written by Jean-Marc Fournier in 2019-07-22, it is a fantastic choice for those who relish reading online the Business & Economics genre. Let's immerse ourselves in this engaging Business & Economics book by exploring the summary and details provided below. Remember, A Buffer Stock Model for the Government Balancing Stability and Sustainability can be Read Online from any device for your convenience.
A Buffer Stock Model for the Government Balancing Stability and Sustainability Book PDF Summary
A fiscal reaction function to debt and the cycle is built on a buffer-stock model for the government. This model inspired by the buffer-stock model of the consumer (Deaton 1991; Carroll 1997) includes a debt limit instead of the Intertemporal Budget Constraint (IBC). The IBC is weak (Bohn, 2007), a debt limit is more realistic as it reflects the risk of losing market access. This risk increases the welfare cost of fiscal stimulus at high debt. As a result, the higher the debt, the less governments should smooth the cycle. A larger reaction of interest rates to debt and higher hysteresis magnify this interaction between the debt level and the appropriate reaction to shocks. With very persistent shocks, the appropriate reaction to negative shocks in highly indebted countries can even be procyclical.
Detail Book of A Buffer Stock Model for the Government Balancing Stability and Sustainability PDF
- Author : Jean-Marc Fournier
- Release : 22 July 2019
- Publisher : International Monetary Fund
- ISBN : 9781498325066
- Genre : Business & Economics
- Total Page : 40 pages
- Language : English
- PDF File Size : 9,7 Mb
If you're still pondering over how to secure a PDF or EPUB version of the book A Buffer Stock Model for the Government Balancing Stability and Sustainability by Jean-Marc Fournier, don't worry! All you have to do is click the 'Get Book' buttons below to kick off your Download or Read Online journey. Just a friendly reminder: we don't upload or host the files ourselves.