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Working Papers, Levy Economics Institute of Bard College >
Please use this identifier to cite or link to this item:
http://hdl.handle.net/10419/57066
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Full metadata record
| DC Field | | Value | | Language |
| dc.contributor.author | | Palacio-Vera, Alfonso | | en_US |
| dc.date.accessioned | | 2011-09-14 | | en_US |
| dc.date.accessioned | | 2012-04-12T14:22:23Z | | - |
| dc.date.available | | 2012-04-12T14:22:23Z | | - |
| dc.date.issued | | 2011 | | en_US |
| dc.identifier.uri | | http://hdl.handle.net/10419/57066 | | - |
| dc.description.abstract | | The main purpose of this study is to explore the potential expansionary effect stemming from the monetization of debt. We develop a simple macroeconomic model with Keynesian features and four sectors: creditor households, debtor households, businesses, and the public sector. We show that such expansionary effect stems mainly from a reduction in the financial cost of servicing the public debt. The efficacy of the channel that allegedly operates through the compression of the risk/term premium on securities is found to be ambiguous. Finally, we show that a country that issues its own currency can avoid becoming stuck in a structural liquidity trap, provided its central bank is willing to monetize the debt created by a strong enough fiscal expansion. | | en_US |
| dc.language.iso | | eng | | en_US |
| dc.publisher | | Levy Economics Inst. Annandale-on-Hudson, NY | | en_US |
| dc.relation.ispartofseries | | Working paper, Levy Economics Institute 685 | | en_US |
| dc.subject.jel | | E10 | | en_US |
| dc.subject.jel | | E12 | | en_US |
| dc.subject.jel | | E44 | | en_US |
| dc.subject.jel | | E52 | | en_US |
| dc.subject.jel | | E58 | | en_US |
| dc.subject.ddc | | 330 | | en_US |
| dc.subject.keyword | | floor system | | en_US |
| dc.subject.keyword | | debt monetization | | en_US |
| dc.subject.keyword | | functional finance | | en_US |
| dc.subject.keyword | | policy coordination | | en_US |
| dc.subject.keyword | | neutral interest rate | | en_US |
| dc.title | | Quantitative easing, functional finance, and the "neutral" interest rate | | en_US |
| dc.type | | Working Paper | | en_US |
| dc.identifier.ppn | | 668287837 | | en_US |
| dc.rights | | http://www.econstor.eu/dspace/Nutzungsbedingungen | | en_US |
| Appears in Collections: | | Working Papers, Levy Economics Institute of Bard College
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