Fiscal and monetary policies in complex evolving economies
Giovanni Dosi
(1)
,
Giorgio Fagiolo
(1)
,
Mauro Napoletano
(2)
,
Andrea Roventini
(1)
,
Tania Treibich
(3, 4)
Mauro Napoletano
- Fonction : Auteur
- PersonId : 741152
- IdHAL : mauro-napoletano
- ORCID : 0000-0002-8128-6674
- IdRef : 167473670
Tania Treibich
- Fonction : Auteur
- PersonId : 1027613
- ORCID : 0000-0002-9679-1905
- IdRef : 16719254X
Résumé
What is the most appropriate combination of fiscal and monetary policies in economies subject to banking crises and deep recessions? We study this issue using an agent-based model that is able to reproduce a wide array of macro- and micro-empirical regularities. Simulation results suggest that policy mixes associating unconstrained, counter-cyclical fiscal policy and monetary policy targeting employment is required to stabilise the economy. We also show that “discipline-guided” fiscal rules can be self-defeating, as they depress the economy without improving public finances. Finally, we find that the effects of monetary and fiscal policies become sharper as the level of income inequality increases.
Domaines
Economies et financesFormat du dépôt | Notice |
---|---|
Type de dépôt | Article dans une revue |
Titre |
en
Fiscal and monetary policies in complex evolving economies
|
Résumé |
en
What is the most appropriate combination of fiscal and monetary policies in economies subject to banking crises and deep recessions? We study this issue using an agent-based model that is able to reproduce a wide array of macro- and micro-empirical regularities. Simulation results suggest that policy mixes associating unconstrained, counter-cyclical fiscal policy and monetary policy targeting employment is required to stabilise the economy. We also show that “discipline-guided” fiscal rules can be self-defeating, as they depress the economy without improving public finances. Finally, we find that the effects of monetary and fiscal policies become sharper as the level of income inequality increases.
|
Auteur(s) |
Giovanni Dosi
1
, Giorgio Fagiolo
1
, Mauro Napoletano
2
, Andrea Roventini
1
, Tania Treibich
3, 4
1
Institute of Economics of Sant'Anna [Pisa]
( 411807 )
- Italie
2
OFCE -
Observatoire français des conjonctures économiques (Sciences Po)
( 250936 )
- 10 place de Catalogne - 75014 Paris
- France
3
GREDEG -
Groupe de Recherche en Droit, Economie et Gestion
( 185786 )
- GREDEG - Bâtiment 2 - Campus Azur du CNRS - 250 rue Albert Einstein - CS 10269 - F
06905 SOPHIA ANTIPOLIS Cedex
- France
4
Maastricht University [Maastricht]
( 83832 )
- Universiteitssingel 40;6200 MD Maastricht
- Pays-Bas
|
Langue du document |
Anglais
|
Nom de la revue |
|
Vulgarisation |
Non
|
Comité de lecture |
Oui
|
Audience |
Internationale
|
Date de publication |
2015-03
|
Volume |
52
|
Page/Identifiant |
166–189
|
Collaboration/Projet |
|
Domaine(s) |
|
Mots-clés |
en
Agent-based model, Fiscal policy, Monetary policy, Income inequality, Austerity policies
|
DOI | 10.1016/j.jedc.2014.11.014 |
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