Stabilizing an unstable economy: Fiscal and monetary policy, stocks, and the term structure of interest rates
Autor(en): | Charpe, Matthieu Flaschel, Peter Hartmann, Florian Proano, Christian |
Stichwörter: | (In-)stability; Business & Economics; Economics; Heterogeneous expectation formation; Monetary business cycles; MONEY; Portfolio choice; Stabilizing policy measures | Erscheinungsdatum: | 2011 | Herausgeber: | ELSEVIER | Enthalten in: | ECONOMIC MODELLING | Band: | 28 | Ausgabe: | 5 | Startseite: | 2129 | Seitenende: | 2136 | Zusammenfassung: | Monetary and fiscal policy measures have been applied in order to avert the financial market collapse and counteract the global recession. In this paper we present an integrated macromodel which in particular focuses on the financial markets. We use a Tobin-like macroeconomic portfolio approach, and the interaction of heterogeneous agents on the financial market to characterize the potential for financial market instability. We show that specific but unorthodox fiscal and monetary policies have to be used to stabilize such unstable macroeconomies. (C) 2011 Elsevier B.V. All rights reserved. |
ISSN: | 02649993 | DOI: | 10.1016/j.econmod.2011.05.005 |
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