Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/128233
Authors: 
Székely, István P.
Roeger, Werner
Veld, Jan in 't
Year of Publication: 
2011
Series/Report no.: 
CASE Network Studies & Analyses 423
Abstract: 
This paper uses a multi region DSGE model with collateral constrained households and residential investment to examine the effectiveness of fiscal policy stimulus measures in a credit crisis. The paper explores alternative scenarios which differ by the type of budgetary measure, its length, the degree of monetary accommodation and the level of international coordination. In particular we provide estimates for New EU Member States where we take into account two aspects. First, debt denomination in foreign currency and second, higher nominal interest rates, which makes it less likely that the Central Bank is restricted by the zero bound and will consequently not accommodate a fiscal stimulus. We also compare our results to other recent results obtained in the literature on fiscal policy which generally do not consider credit constrained households.
Subjects: 
Fiscal Policy
Monetary Policy
Fiscal Multiplier
Collateral Constraint
DSGE modelling
JEL: 
E21
E62
F42
H31
H63
ISBN: 
978-83-7178-534-4
Document Type: 
Research Report

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