The twin deficit theory in a dynamic consistent stock-flow model for an open economy
This paper aims to incorporate explicitly the twin deficits theory in a stock-flowconsistent model to analyze the impact of fiscal policy and public debt dynamics in a post-Keynesian model, investigating the effects and limitations. Even rejecting many neoclassicalhypotheses, fiscal policy has limit...
| Autores: | , |
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| Tipo de recurso: | artículo |
| Estado: | Versión publicada |
| Fecha de publicación: | 2022 |
| País: | Brasil |
| Institución: | EDITORA 34 |
| Repositorio: | Revista de Economia Política |
| Idioma: | portugués |
| OAI Identifier: | oai:ojs2.centrodeeconomiapolitica.org:article/2349 |
| Acceso en línea: | https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/2349 |
| Access Level: | acceso abierto |
| Palabra clave: | Stock-flow consistent fiscal policy external constraint twin deficits post- Keynesianism política fiscal restrição externa déficits gêmeos pós-keynesianismo |
| Sumario: | This paper aims to incorporate explicitly the twin deficits theory in a stock-flowconsistent model to analyze the impact of fiscal policy and public debt dynamics in a post-Keynesian model, investigating the effects and limitations. Even rejecting many neoclassicalhypotheses, fiscal policy has limitation to stimulate permanently economic growth becauseif it’s incompatible with balance of payment equilibrium, net external debt would rise andbecome unsustainable. Finally, this hypothesis is tested empirically and it is verified that thedynamics of the fiscal policy and external position are associated when specified accordingto Godley and Cripps (1983) and modified by Pérez Caldentey (2007). JEL Classification: E12; E62; F41; F43. |
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