Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/68218
Authors: 
van Aarle, Bas
Year of Publication: 
2012
Series/Report no.: 
CESifo Working Paper: Fiscal Policy, Macroeconomics and Growth 4017
Abstract: 
This study develops a stylised DSGE model, that departs in one aspect: it replaces the general equilibrium approach by disequilibrium economics. In this way, richer macroeconomic adjustment dynamics result, as it is not necessary to assume that goods and labour markets continuously clear. The disequilibrium dynamics - in the form of regime-dependent output and employment fluctuations, wage and price adjustments-complicate (viz. enrich) the decision making problems faced by the fiscal and monetary policymakers. In particular the possibility of (multiple) regime switches implies the need for deeper analysis and monitoring of the disequilibrium mechanisms when designing and implementing monetary and fiscal policies.
Subjects: 
disequilibrium analysis
DSGE model
macroeconomic policy
JEL: 
C22
E32
E66
F42
Document Type: 
Working Paper

Files in This Item:
File
Size
267.49 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.