Fiscal buffers, private debt, and stagnation : the good, the bad and the ugly /

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Bibliographic Details
Author / Creator:	Batini, Nicoletta, author.
Imprint:	[Washington, D.C.] : International Monetary Fund, European Department and Research Department, [2016]. ©2016
Description:	1 online resource (33 pages).
Language:	English
Series:	IMF working paper ; WP/16/104 IMF working paper ; WP/16/104.
Subject:	Fiscal policy -- Econometric models. Debts, Public -- Econometric models. Debt -- Econometric models. Debt -- Econometric models. Debts, Public -- Econometric models. Fiscal policy -- Econometric models.
Format:	E-Resource Book
URL for this record:	http://pi.lib.uchicago.edu/1001/cat/bib/12505089

Hidden Bibliographic Details
Other authors / contributors:	Melina, Giovanni, author. Villa, Stefania, author. International Monetary Fund. European Department, issuing body. International Monetary Fund. Research Department, issuing body.
ISBN:	148436550X 9781484365502
ISSN:	1018-5941
Notes:	"May 2016." Includes bibliographical references (pages 36-38).
Summary:	"The authors revisit the empirical relationship between private/public debt and output, and build a model that reproduces it. In the model, the government provides financial assistance to credit-constrained agents to mitigate deleveraging. As they observe in the data, surges in private debt are potentially more damaging for the economy than surges in public debt. The model suggests two policy implications. First, capping leverage leads to milder recessions, but also implies more muted expansions. Second, with fiscal buffers, financial assistance to credit-constrained agents helps avoid stagnation. The growth returns from intervention decline as the government approaches the fiscal limit."--Abstract.
Standard no.:	10.5089/9781484365502.001

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