Fiscal retrenchment and the level of economic activity
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Fiscal retrenchment and the level of economic activity

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Published by Federal Reserve Bank of Boston in Boston .
Written in English


  • Government spending policy -- Econometric models

Book details:

Edition Notes

Statementby Giovanni Olivei.
SeriesWorking paper series Federal Reserve Bank of Boston -- no. 99-3., Working paper series (Federal Reserve Bank of Boston) -- no. 99-3.
The Physical Object
Pagination29, [6] p. :
Number of Pages29
ID Numbers
Open LibraryOL17591627M

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  Fiscal Retrenchments and the Level of Economic Activity Text Document (pdf) I analyze the effects of an expected future reduction in government spending on the current level of economic activity. In a closed-economy dynamic general equilibrium setup with nominal rigidities, it is shown that expected future cuts in government spending. Two major objectives of fiscal policy are taxation and expenditure of government Transforming in the level, composition of taxation and government expenditure can force on the following variables in an economy: Aggregate demand and the level of economic activity; The pattern of resource allocation; The distribution of income. Fiscal Policy in Stimulating Economic Activity: A Review of the Literature,” IMF W orking Paper 02/ (W ashington: International Monetary Fund). Khalid, Ahmed M., , “Ricardian.   Expansionary Policy: An expansionary policy is a macroeconomic policy that seeks to expand the money supply to encourage economic growth or combat inflationary price increases. One form of.

  Fiscal Volatility Shocks and Economic Activity by Jesús Fernández-Villaverde, Pablo Guerrón-Quintana, Keith Kuester and Juan Rubio-Ramírez. Published in volume , is pages of American Economic Review, November , Abstract: We study how unexpected changes in uncertainty about. Fiscal policy—the use of government expenditures and taxes to influence the level of economic activity—is the government counterpart to monetary policy. Like monetary policy, it can be used in an effort to close a recessionary or an inflationary gap. Some tax and expenditure programs change automatically with the level of economic activity. governments affect economic activity (GDP), controlling G directly and infl uencing C, I, and NX indirectly, through changes in taxes, transfers, and spending. Fiscal policy that in-creases aggregate demand directly through an increase in gov-ernment spending is typically called expansionary or “loose.”.   The primary sector of the economy extracts or harvests products from the earth such as raw materials and basic foods. Activities associated with primary economic activity include agriculture (both subsistence and commercial), mining, forestry, grazing, hunting and gathering, fishing, and packaging and processing of raw materials are also Author: Matt Rosenberg.

Economic Activity Levels • Quaternary Level –Economies have reached the technological level. –People are involved in jobs such as information research, management and administration and have a mass consumption of goods and services. –Found in countries with the highest level of economic developmentFile Size: KB. activity in the feedback mechanism has only recen tly received meso-level interest group mechan ism has not been as We find a positive correlation between fiscal retrenchment and. Downloadable! This thesis consists of four essays in empirical macroeconomics. The first three essays examine the conduct of monetary policy during a disinflationary and deflationary era, with the policy interest rates close to or at the zero questions of interest include the potency of the interest rate channel, the stability of broad money demand, and the possibility to use the Author: Aaron Mehrotra. economic activity: Actions that involve the production, distribution and consumption of goods and services at all levels within a society. Gross domestic product or GDP is one way of assessing economic activity, and the degree of current economic activity and forecasts for its future level can significantly impact business activity and.