The Government Spending Multiplier in a (Mis)Managed Liquidity Trap

I study the impact of a government spending shock in a New Keynesian model when monetary policy is set optimally. In this framework, the economy is at the zero lower bound but expectations are well managed by the central bank. As such, the multiplier effect of government spending increases on expect...

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Bibliographic details
Volume:	50
Main Author:	ROULLEAU‐PASDELOUP, JORDAN
Format:	Journal Article
Language:	English
Zielgruppe:	Academic
Place of publication:	HOBOKEN WILEY 01.03.2018 Wiley Subscription Services, Inc
published in:	Journal of money, credit and banking Vol. 50; no. 2-3; pp. 293 - 315
Data of publication:	March-April 2018
ISSN:	0022-2879 1538-4616
EISSN:	1538-4616
Discipline:	Economics Business
Bibliography:	I thank my coauthors for allowing me to use material from our joint work. I thank A. Tischbirek as well as the editor and two anonymous referees for extensive comments on early versions of this manuscript. Most of the work done on this paper has been done during my postdoctoral fellowship at the University of Lausanne and I want to thank them for their kind hospitality and support. Some of the codes used in this paper are based on those written for Bouakez, Guillard, and Roulleau‐Pasdeloup
Subjects:	E62 E31 E52 E32 zero lower bound New Keynesian government spending multiplier Economics Business & Economics Social Sciences Business, Finance Keynesian economics Monetary policy Expenditures, Public Analysis United States CHANNEL zero lower bound New Keynesian OPTIMAL MONETARY-POLICY government spending multiplier NOMINAL INTEREST-RATES FISCAL-POLICY EXPECTATIONS GREAT RECESSION US
Online Access:	Fulltext
Database:	Social Sciences Citation Index Web of Science - Social Sciences Citation Index – 2018 Web of Knowledge Web of Science CrossRef Gale General OneFile (A&I only) Academic OneFile (A&I only) Database information Databases - DBIS