Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/168070
Authors: 
Rannenberg, Ansgar
Year of Publication: 
2017
Series/Report no.: 
Beiträge zur Jahrestagung des Vereins für Socialpolitik 2017: Alternative Geld- und Finanzarchitekturen - Session: Fiscal Policy C07-V1
Abstract: 
I examine how the effects of fiscal policy and forward guidance are shaped by preferences over wealth calibrated based on microeconomic evidence on household saving behavior and individual discount rates. The contractionary effect of a permanent cut in government expenditure implemented during a period when monetary policy is constrained becomes larger due to smaller consumption crowding. Furthermore, the assumption much reduces the effect of forward guidance on the future policy interest rate.
JEL: 
E52
E62
E32
Document Type: 
Conference Paper

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