Bitte verwenden Sie diesen Link, um diese Publikation zu zitieren, oder auf sie als Internetquelle zu verweisen: https://hdl.handle.net/10419/126613 
Erscheinungsjahr: 
2015
Schriftenreihe/Nr.: 
Discussion Papers No. 15-04
Verlag: 
University of Bern, Department of Economics, Bern
Zusammenfassung: 
Recent empirical findings attribute a central role to the degree of economic openness for determining the size of the fiscal multiplier. However, traditional macroeconomic models have difficulties in accounting for this evidence. It is the purpose of this paper to provide a theoretical framework which is able to attest for the new empirical evidence. To this end, we introduce the formation of "deep habits" into a New Keynesian small open economy model and give an active role to monetary policy. The presence of counter-cyclical firm markups is a crucial ingredient to generating a fiscal multiplier of empirically consistent size which is influenced by openness. We study three dimensions of economic openness: Exchange rate flexibility, trade openness and capital mobility. In line with the empirical findings, we report a negative relationship with the fiscal multiplier.
Schlagwörter: 
fiscal multiplier
exchange rate flexibility
openness to trade
capital mobility
JEL: 
E12
E62
F4
Dokumentart: 
Working Paper

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