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portada monetary and fiscal dynamics
Type
Physical Book
Author
Publisher
Year
1992
Language
English
Pages
194
Format
Paperback
Dimensions
24.4x17x1.1 cm
Weight
0.33 kg.
ISBN
3790806196
ISBN13
9783790806199
Categories

monetary and fiscal dynamics

Michael Carlberg (Author) · Physica-Verlag · Paperback

monetary and fiscal dynamics - Carlberg, Michael

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Synopsis "monetary and fiscal dynamics"

The analysis will be conducted within an IS-LM model augmen- ted by the dynamics of money wages, private capital and public debt. A macroeconomic shock induces an extended process of adjustment that is characterized by unemployment. This in turn requires a dynamic path of monetary and fiscal policy: As a response to the shock, the central bank continuouslyadapts the quantity of money so as to keep up full employment all the time. And the government continuously accommodates its purchases of goods and services. Can this be sustained? Or will public debt tend to explode, thereby driving the stock of capial down to zero?

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