Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/319999 
Year of Publication: 
2017
Series/Report no.: 
CASMEF Working Paper Series No. WP 2017/08
Publisher: 
LUISS Guido Carli, Department of Economics and Finance, Arcelli Centre for Monetary and Financial Studies, Rome
Abstract: 
We study the effects of expansionary fiscal shocks in a two-country DSGE model with perpetual youth. We consider two alternative financing regimes, monetary financing and debt financing, and find that a money-financed fiscal stimulus is more expansionary on output and inflation. We investigate how the transmission mechanism is related to the open-economy dimension and how structural parameters a↵ect macroeconomic dynamics.
Subjects: 
Exchange Rate
Fiscal Shocks
Helicopter Drop
JEL: 
E32
E52
F41
F42
Document Type: 
Working Paper

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