Previous studies argue that, based on the New Keynesian framework, a fiscal stimulus financed by money creation has a strong positive effect on output under a rdoi:10.2139/ssrn.3226797Tsuruga, TakayukiWake, ShotaSocial Science Electronic Publishing...
Money-Financed Fiscal Stimulus: The Effects of Implementation Lagdoi:10.2139/ssrn.3328295Takayuki TsurugaShota WakeSSRN Electronic Journal
This paper studies the local determinacy requirements and the effects of a money-financed fiscal stimulus under fiscal stress in a canonical New Keynesian model. We consider three alternative monetary policies and find that the money-financed policy adopted in Galí (2020) to keep zero-debt-increase...
These risks include persistently high ination if the central bank fully adhered to the program; or alternatively, that such a program would be ineective in providing stimulus if the public doubted the central bank's commitment to such an extreme strategy. We also highlight how more limited ...
The article sheds light on helicopter money's effectiveness in stimulating activity and bringing inflation back to target, in particular compared to the expected effect of a conventional debt-financed fiscal stimulus, while also drawing attention to the risks and limitations of such a policy option....
We analyze the redistribution channel of a money鈥恌inanced fiscal stimulus (MFFS) versus debt鈥恌inanced fiscal stimulus (DFFS) in a Borrower鈥揝aver framework. The redistribution channel is larger when we consider an MFFS and borrowers are the main beneficiaries. A liquidity trap scenario ...
I analyze the effects of a money-financed fiscal stimulus and compare them with those resulting from a conventional debt-financed stimulus. I study the effects of both a tax cut and an increase in government purchases, with and without a binding zero lower bound (ZLB) on the nominal interest...
Fiscal StimuliWelfareFiscal MultipliersWe analyse the redistribution channel of a money-financed versus debt-financed fiscal stimulus in a Borrower-Saver frammework. The redistribution channel is larPunzo, ChiaraRossi, LorenzaSocial Science Electronic Publishing...
The Effects of a Money-Financed Fiscal Stimulusfiscal multipliergovernment spendingseignorageI analyze the effects of an increase in government purchases financed entirely through seignorage, in both a classical and a New Keynesian framework, and comparSocial Science Electronic Publishing...