Arbeitspapier
Capital Mobility and the Effectiveness of Fiscal Policy in Open Economies
This paper uses a dynamic general equilibrium two-country optimizing 'new-open economy macroeconomics? model to analyze the consequences of international capital mobility for the effectiveness of fiscal policy. Conventional wisdom suggests that higher capital mobility diminishes the effectiveness of fiscal policy. The model laid out in this paper provides an example that a higher degree of capital mobility can also increase the effectiveness of fiscal policy. This tends to be the case if the stance of monetary policy can be described by means of a simple monetary policy rule.
- Language
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Englisch
- Bibliographic citation
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Series: Kiel Working Paper ; No. 1164
- Classification
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Wirtschaft
Financial Aspects of Economic Integration
Open Economy Macroeconomics
- Subject
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Fiscal policy
Capital mobility
Financial market integration
Monetary Policy
Finanzpolitik
Wirtschaftspolitische Wirkungsanalyse
Neue Makroökonomik offener Volkswirtschaften
Offene Volkswirtschaft
Allgemeines Gleichgewicht
Internationale Kapitalmobilität
Internationaler Finanzmarkt
Geldpolitisches Ziel
Theorie
- Event
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Geistige Schöpfung
- (who)
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Pierdzioch, Christian
- Event
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Veröffentlichung
- (who)
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Kiel Institute for World Economics (IfW)
- (where)
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Kiel
- (when)
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2003
- Handle
- Last update
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10.03.2025, 11:42 AM CET
Data provider
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Object type
- Arbeitspapier
Associated
- Pierdzioch, Christian
- Kiel Institute for World Economics (IfW)
Time of origin
- 2003