Fiscal deficit reduction programs in developing countries: Stabilization versus growth in the presence of credit rationing

This paper presents a model for analyzing potential conflicts between short-run output and employment effects and medium-run growth effects of various fiscal actions. In the model, both firms and households are intertemporal optimizers; short-run wage stickiness and interest rate controls generate m...

Descripción completa

Detalles Bibliográficos
Autor: Cuddington, John T.
Tipo de recurso: artículo
Estado:Versión publicada
Fecha de publicación:1992
País:México
Institución:EL COLEGIO DE MÉXICO
Repositorio:Estudios Económicos de El Colegio de México
Idioma:inglés
OAI Identifier:oai:oai.estudioseconomicos.colmex.mx:article/306
Acceso en línea:https://estudioseconomicos.colmex.mx/index.php/economicos/article/view/306
Access Level:acceso abierto
Palabra clave:fiscal policies
macroeconomy
deficit
políticas fiscales
macroeconomía
déficit
Descripción
Sumario:This paper presents a model for analyzing potential conflicts between short-run output and employment effects and medium-run growth effects of various fiscal actions. In the model, both firms and households are intertemporal optimizers; short-run wage stickiness and interest rate controls generate macroeconomic disequilibrium. The analysis focuses on the consequences of various government expenditure or deficit reduction policies.