Monetary and Fiscal Dynamics
Language: English
Published by Springer, 1992
- Softcover
- Used
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Softcover
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pp. 194.
Seller Inventory # 183126409
- Title
- Monetary and Fiscal Dynamics
- Author
- Carlberg Michael
- Publisher
- Springer
- Publication year
- 1992
- Condition
- Used
- Binding
- Soft cover
- Language
- English
- ISBN 10
- 0387914234
- ISBN 13
- 9780387914237
The analysis will be conducted within an IS-LM model augmen- ted by the dynamics of money wages, private capital and public debt. A macroeconomic shock induces an extended process of adjustment that is characterized by unemployment. This in turn requires a dynamic path of monetary and fiscal As a response to the shock, the central bank continuouslyadapts the quantity of money so as to keep up full employment all the time. And the government continuously accommodates its purchases of goods and services. Can this be sustained? Or will public debt tend to explode, thereby driving the stock of capial down to zero?
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