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Fiscal stimulus in a global zero lower bound environment

Author

Listed:
  • Fernando Garcia-Barragan
  • Guangling Dave Liu
Abstract
This paper investigates the effect of fi scal stimulus from an emerging market economy perspective. The model captures the significant decline in China’s net exports and remarkable quantity of resources that the Chinese government invested into the economy through state-owned enterprises in the aftermath of the 2007-2008 global financial crisis. Our results suggest that scal […]

Suggested Citation

  • Fernando Garcia-Barragan & Guangling Dave Liu, 2018. "Fiscal stimulus in a global zero lower bound environment," Working Papers 758, Economic Research Southern Africa.
    • Handle: RePEc:rza:wpaper:758
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    References listed on IDEAS

    as
    1. Schmitt-Grohe, Stephanie & Uribe, Martin, 2003. "Closing small open economy models," Journal of International Economics, Elsevier, vol. 61(1), pages 163-185, October.
    2. Hafedh Bouakez & Michel Guillard & Jordan Roulleau-Pasdeloup, 2017. "Public Investment, Time to Build, and the Zero Lower Bound," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 23, pages 60-79, January.
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    6. Lawrence Christiano & Martin Eichenbaum & Sergio Rebelo, 2011. "When Is the Government Spending Multiplier Large?," Journal of Political Economy, University of Chicago Press, vol. 119(1), pages 78-121.
    7. Christopher Erceg & Jesper Lindé, 2014. "Is There A Fiscal Free Lunch In A Liquidity Trap?," Journal of the European Economic Association, European Economic Association, vol. 12(1), pages 73-107, February.
    8. Michael Woodford, 2011. "Simple Analytics of the Government Expenditure Multiplier," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(1), pages 1-35, January.
    9. Leeper, Eric M. & Walker, Todd B. & Yang, Shu-Chun S., 2010. "Government investment and fiscal stimulus," Journal of Monetary Economics, Elsevier, vol. 57(8), pages 1000-1012, November.
    10. Aaron Mehrotra & Riikka Nuutilainen & Jenni Pääkkönen, 2013. "Changing Economic Structures and Impacts of Shocks: Evidence from a Dynamic Stochastic General Equilibrium Model for C hina," Pacific Economic Review, Wiley Blackwell, vol. 18(1), pages 92-107, February.
    11. Harald Uhlig, 2010. "Some Fiscal Calculus," American Economic Review, American Economic Association, vol. 100(2), pages 30-34, May.
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    More about this item

    Keywords

    Emerging economies; fiscal policy;

    JEL classification:

    • E4 - Macroeconomics and Monetary Economics - - Money and Interest Rates
    • E52 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - Monetary Policy
    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • F41 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - Open Economy Macroeconomics
    • H54 - Public Economics - - National Government Expenditures and Related Policies - - - Infrastructures

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