Trend growth and the dynamic effects of government spending
The paper studies the macroeconomic effects of government spending shocks in an economy characterized by positive trend growth. It shows that the lower is the trend growth rate the less inflationary are government spending shocks and vice versa. Moreover, on impact output is higher but exhibits less...
|Main Author:||Tesfaselassie, Mewael F|
|Place of publication:||
Kiel Kiel Institute for the World Economy (IfW) 2011
|published in:||Kiel Working Paper Vol. 1678|
|Data of publication:||2011|
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