The role of fiscal policy — A survey of recent empirical findings

Le, Vo Phuong Mai ORCID: https://orcid.org/0000-0003-3374-9694, Meenagh, David ORCID: https://orcid.org/0000-0002-9930-7947 and Minford, Patrick ORCID: https://orcid.org/0000-0003-2499-935X 2024. The role of fiscal policy — A survey of recent empirical findings. Open Economies Review 10.1007/s11079-024-09759-4

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Abstract

DSGE models based on New Keynesian principles, which have been extended to allow for banking, the zero lower bound on interest rates (ZLB), and varying price duration, can account well for recent macroeconomic behavior across a variety of economies. These models find that active fiscal policy can contribute to macroeconomic stability and welfare by reducing the frequency of hitting the ZLB. Fiscal policy can also share the stabilisation role with monetary policy, whose effectiveness under the ZLB is much reduced.

Item Type:	Article
Date Type:	Published Online
Status:	In Press
Schools:	Business (Including Economics)
Publisher:	Springer
ISSN:	0923-7992
Date of First Compliant Deposit:	19 April 2024
Date of Acceptance:	14 March 2024
Last Modified:	22 Apr 2024 13:32
URI:	https://orca.cardiff.ac.uk/id/eprint/168163

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