Fiscal deficit reduction programs in developing countries: Stabilization versus growth in the presence of credit rationing
This paper presents a model for analyzing potential conflicts between short-run output and employment effects and medium-run growth effects of various fiscal actions. In the model, both firms and households are intertemporal optimizers; short-run wage stickiness and interest rate controls generate m...
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| Format: | article |
| Status: | Published version |
| Publication Date: | 1992 |
| Country: | México |
| Institution: | EL COLEGIO DE MÉXICO |
| Repository: | Estudios Económicos de El Colegio de México |
| Language: | English |
| OAI Identifier: | oai:oai.estudioseconomicos.colmex.mx:article/306 |
| Online Access: | https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/306 |
| Access Level: | Open access |
| Keyword: | fiscal policies macroeconomy deficit políticas fiscales macroeconomía déficit |
| Summary: | This paper presents a model for analyzing potential conflicts between short-run output and employment effects and medium-run growth effects of various fiscal actions. In the model, both firms and households are intertemporal optimizers; short-run wage stickiness and interest rate controls generate macroeconomic disequilibrium. The analysis focuses on the consequences of various government expenditure or deficit reduction policies. |
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