Stabilizing an unstable economy: Fiscal and monetary policy,stocks, and the term structure of interest rates |
| |
| Authors: | Matthieu Charpe Peter Flaschel Florian Hartmann Christian Proaño |
| |
| Institution: | 1. Department of Mathematics and School of Economics, Management and Statistics, University of Bologna, Italy;2. Department of Economics, University of Bamberg, Germany;1. LUISS Guido Carli University, Viale Romania, 32, 00197 Rome, Italy;2. European Central Bank, Financial Research Division, Sonnemannstraße 22, 60314 Frankfurt, Germany;3. Vrije Universiteit Amsterdam, De Boelelaan 1105, 1081 HV Amsterdam, The Netherlands;4. CREATES, Aarhus University, Fuglesangs Allé 4, 8210 Aarhus,Denmark;5. Tinbergen Institute, Gustave Mahlerplein 117, 1082 MS Amsterdam, The Netherlands;1. Adnan Kassar School of Business, Lebanese American University, Lebanon;2. Department of Economics, University of Pretoria, Pretoria, 0002, South Africa;3. Department of Physical Sciences, School of Engineering, Technology & Sciences, Independent University, Dhaka 1229, Bangladesh;4. Indian Institute of Management Lucknow, Prabandh Nagar off Sitapur Road, Lucknow, Uttar Pradesh 226013, India |
| |
| Abstract: | Monetary and fiscal policy measures have been applied in order to avert the financial market collapse and counteract the global recession. In this paper we present an integrated macromodel which in particular focuses on the financial markets. We use a Tobin-like macroeconomic portfolio approach, and the interaction of heterogeneous agents on the financial market to characterize the potential for financial market instability. We show that specific but unorthodox fiscal and monetary policies have to be used to stabilize such unstable macroeconomies. |
| |
| Keywords: | |
| 本文献已被 ScienceDirect 等数据库收录！ |
|
