On Keynesian effects of apparent non-Keynesian fiscal policies Report as inadecuate




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Abstract

The aim of this paper is to evaluate the robustness of the theory that claims restrictive effects of expansionary fiscal policy. It shows that such so-called -non-Keynesian effects- may arise from synchronous and opposite monetary policy interventions. The paper demonstrates this conclusion through a stylized model – supported by an empirical investigation on ECB and FED reaction functions – in which Central Banks consider deficit spending as an element that generates inflation expectations. Econometric analysis also shows that the ECB reacts asymmetrically to deficit spending variations while the FED has a linear reaction to this indicator.



Item Type: MPRA Paper -

Institution: Dipartimento di analisi dei processi socio-economici, produttivi e territoriali. Facoltà di Economia. Università di Napoli -Federico II-

Original Title: On Keynesian effects of apparent non-Keynesian fiscal policies-

Language: English-

Keywords: Fiscal policy; Monetary policy; Central Banks Policy strategies-

Subjects: E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E63 - Comparative or Joint Analysis of Fiscal and Monetary Policy ; Stabilization ; Treasury PolicyE - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E58 - Central Banks and Their PoliciesE - Macroeconomics and Monetary Economics > E5 - Monetary Policy, Central Banking, and the Supply of Money and Credit > E52 - Monetary PolicyE - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy-





Author: Canale, Rosaria Rita

Source: https://mpra.ub.uni-muenchen.de/3742/







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