Fiscal deficits debt and monetary policy in a liquidity trap

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dc.contributor.authorDevereux, Michael B.
dc.date.accessioned2019-11-01T00:05:23Z
dc.date.available2019-11-01T00:05:23Z
dc.date.issued2011
dc.descriptionThe dramatic policy response to the 2008-09 global economic crisis from many countries has revived some old debates about the use of fiscal and monetary policy in fighting recessions. The central dilemma for policy-makers in Japan North America and Europe has been to try to counter a large recession brought on by an unprecedented fall in private consumption and investment spending despite being constrained by their inability to lower nominal interest rates below their current near-zero level. The end result was an ad hoc series of fiscal and monetary measures: deficit-financed government spending increases tax cuts and unconventional monetary policy measures such as open market purchases on long-dated securities direct increases in the monetary base and so on. Coming under the catch-all term of 'stimulus-packages' the design of these policies was not based on theoretical frameworks or quantitative macroeconomic models of the kind explored within central banks over the past decade but rather arose from 'back-of-the-envelope' style arguments about the size of fiscal multipliers and the impact of liquidity injections on credit flows.
dc.file.nameBCCh-sbc-v16-p369_410
dc.format.pdf
dc.format.extentSección o Parte de un Documento
dc.format.mediump. 369-410
dc.identifier.isbn978-956-7421-35-0
dc.identifier.urihttps://hdl.handle.net/20.500.12580/3884
dc.language.isoeng
dc.publisherBanco Central de Chile
dc.relation.ispartofSeries on Central Banking Analysis and Economic Policies no. 16
dc.rightsAttribution-NonCommercial-NoDerivs 3.0 Chile*
dc.rights.urihttp://creativecommons.org/licenses/by-nc-nd/3.0/cl/*
dc.subjectPOLÍTICA MONETARIAes_ES
dc.subjectLIQUIDEZ (ECONOMÍA)es_ES
dc.subjectCRISIS ECONÓMICA 2008es_ES
dc.subjectRECESIONESes_ES
dc.subjectTASAS DE INTERÉSes_ES
dc.subjectPOLÍTICA FISCALes_ES
dc.titleFiscal deficits debt and monetary policy in a liquidity trap
dc.type.docArtículo

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