Great Recession, Slow Recovery and Muted Fiscal Policies in the US
|Title:||Great Recession, Slow Recovery and Muted Fiscal Policies in the US||Authors:||Albonico, Alice
|Permanent link:||http://hdl.handle.net/10197/7609||Date:||Mar-2016||Abstract:||This paper reconsiders the role of macroeconomic shocks and policies in determining the Great Recession and the subsequent recovery in the US. The Great Recession was mainly caused by a large demand shock and by the ZLB on the interest rate policy. In contrast with previous findings, the subsequent jobless recovery is explained by the ZLB effect. We estimate a fraction of non-Ricardian households which is close to 50%, and obtain comparatively large fiscal multipliers. However we cannot detect a significant contribution of fiscal policies in stabilizing the US economy. For instance, the 2007-2009 large increase in expenditure-to-GDP ratios was apparently determined by the adverse non-policy shocks that caused the recession.||Type of material:||Working Paper||Publisher:||University College Dublin. School of Economics||Keywords:||DSGE;Limited asset market participation;Bayesian estimation;US economy;Business cycle;Monetary policy;Fiscal policy||Language:||en||Status of Item:||Not peer reviewed|
|Appears in Collections:||Economics Working Papers & Policy Papers|
Show full item record
This item is available under the Attribution-NonCommercial-NoDerivs 3.0 Ireland. No item may be reproduced for commercial purposes. For other possible restrictions on use please refer to the publisher's URL where this is made available, or to notes contained in the item itself. Other terms may apply.