scholarly journals Fiscal Stimulus and Consumer Debt

2019 ◽  
Vol 101 (4) ◽  
pp. 728-741 ◽  
Author(s):  
Yuliya Demyanyk ◽  
Elena Loutskina ◽  
Daniel Murphy
Keyword(s):  
Adverse Effect ◽  
Open Economy ◽  
Department Of Defense ◽  
Defense Spending ◽  
Detailed Data ◽  
Consumer Debt ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Fiscal Multiplier ◽  
Economic Output

In the aftermath of the consumer debt–induced recession, policymakers have questioned whether fiscal stimulus is effective during periods of high consumer indebtedness. This study empirically investigates this question. Using detailed data on Department of Defense spending for the 2007–2009 period, we document that the open-economy relative fiscal multiplier is higher in geographies with higher consumer debt. The results suggest that in the short term (2007–2009), fiscal policy can mitigate the adverse effect of consumer (over)leverage on real economic output during a recession. We then exploit detailed microdata to show that both heterogeneous marginal propensities to consume and slack-driven economic mechanisms contribute to the debt-dependent multiplier.

EFFECTS OF FEEDING A HIGH LEVEL OF TOWER RAPESEED MEAL IN DAIRY RATIONS ON FEED INTAKE AND MILK PRODUCTION

1977 ◽  
Vol 57 (4) ◽  
pp. 653-662 ◽  
Author(s):  
H. R. SHARMA ◽  
J. R. INGALLS ◽  
J. A. MCKIRDY
Keyword(s):  
Adverse Effect ◽  
Milk Production ◽  
Milk Yield ◽  
Feed Intake ◽  
Milk Fat ◽  
Rapeseed Meal ◽  
Feed Consumption ◽  
Short Term ◽  
N Retention ◽  
High Level

In experiment 1, 12 cows were used to compare the two (0–0) rapeseed meal (1788 and Tower) varieties with the commercial rapeseed meal (CRSM) and soybean meal (SBM). Feed intake, milk yield and fat content were not different (P > 0.05) among the four treatments; however, protein content was higher (P < 0.05) for the cows fed CRSM and SBM diets than for those fed the 1788–RSM diet. But more (P < 0.05) milk fat was produced by the cows fed 1788–RSM than by those fed CRSM and SBM diets. In experiment 2, eight cows were used to determine the effects of replacing SBM with Tower and also replacing a portion of Tower with urea (TU) in a mixed or extruded (TUE) form on feed intake, milk yield and nitrogen (N) retention. No differences were observed in feed consumption, milk yield or composition among the treatments. Serum thyroxine (T4) level was higher (P < 0.05) for the cows fed SBM than for those fed the 1788–SBM and was similar to levels for cows fed CRSM and Tower in the first experiment. However, no differences were found in thyroxine level in the second experiment. Extrusion of Tower–urea mixture increased (P < 0.05) the N retention compared with other treatments. These short-term studies suggest that up to 25% Tower RSM can be used in dairy rations without adverse effect on performance.

A Decade After the 2009 Global Recession: Macroeconomic Developments

2021 ◽  
pp. 2150011
Author(s):  
Wee Chian Koh ◽  
Shu Yu
Keyword(s):  
Low Income ◽  
Developing Economies ◽  
Emerging Market ◽  
Bank Lending ◽  
Low Income Countries ◽  
Short Term ◽  
Fiscal Stimulus ◽  
Cross Border ◽  
Global Recession ◽  
The Impact

Emerging market and developing economies (EMDEs) weathered the 2009 global recession relatively well. However, the impact of the global recession varied across economies. EMDEs with stronger pre-crisis fundamentals — such as large foreign exchange reserves, sound fiscal positions, and low inflation — suffered milder growth slowdowns, in part due to their greater capacity to engage in monetary and fiscal stimulus. Low-income countries were also resilient, as foreign aid and inflows of remittances remained relatively stable. In contrast, EMDEs that were heavily dependent on short-term capital flows — such as portfolio investment and cross-border bank lending — fared less well, especially those in Europe and Central Asia. A key lesson for EMDEs is the need to strengthen macroeconomic frameworks and create policy space to prepare for future global downturns.

scholarly journals Fiscal Stimulus in a Monetary Union: Evidence from US Regions

2014 ◽  
Vol 104 (3) ◽  
pp. 753-792 ◽  
Author(s):  
Emi Nakamura ◽  
Jón Steinsson
Keyword(s):  
Monetary Union ◽  
Open Economy ◽  
Government Spending ◽  
Tax Policy ◽  
Regional Variation ◽  
Historical Data ◽  
Closed Economy ◽  
Fiscal Stimulus ◽  
Highly Sensitive ◽  
Military Procurement

We use rich historical data on military procurement to estimate the effects of government spending. We exploit regional variation in military buildups to estimate an “open economy relative multiplier” of approximately 1.5. We develop a framework for interpreting this estimate and relating it to estimates of the standard closed economy aggregate multiplier. The latter is highly sensitive to how strongly aggregate monetary and tax policy “leans against the wind.” Our open economy relative multiplier “differences out” these effects because monetary and tax policies are uniform across the nation. Our evidence indicates that demand shocks can have large effects on output. (JEL E12, E32, E62, F33, H56, H57, R12)

scholarly journals PENGARUH INFLASI, JUB, SBI, SERTA CADANGAN DEVISA TERHADAP NILAI TUKAR RUPIAH TAHUN 2017-2020

2021 ◽  
Vol 6 (2) ◽  
pp. 60-72
Author(s):  
Duwik Tri Utami ◽  
Fitrah Sari Islami
Keyword(s):  
Exchange Rate ◽  
Interest Rate ◽  
Money Supply ◽  
Foreign Exchange ◽  
Open Economy ◽  
The United States ◽  
Foreign Exchange Reserves ◽  
Short Term ◽  
The Exchange Rate

Indonesia's economy refers to an open economy. In conducting international trade, countries must compare their currencies with currencies belonging to other countries. Where, the United States currency, namely the dollar, is still the standard of world exchange rates and is used in international transactions. The effect of fluctuations in the exchange rate of the rupiah with the dollar is the occurrence of depreciation or appreciation which will affect Indonesia's economic activities. The purpose of this study is to determine the effect of inflation, the money supply (M2), the SBI interest rate, and foreign exchange reserves on the rupiah exchange rate in the short and long term. The variables that are thought to be able to influence changes in the rupiah exchange rate are the inflation rate, the money supply (M2), the SBI interest rate, and foreign exchange reserves. This research was conducted during January 2017 to December 2020, using the Error Correction Model (ECM). The result is a long-term and short-term relationship. In the short term, foreign exchange reserves and the money supply (M2) significantly affect the exchange rate. Meanwhile, in the long term, the SBI interest rate, money supply (M2), and foreign exchange reserves significantly affect the exchange rate.

The Dynamic Effects of Fiscal Stimulus in a Two-Sector Open Economy

2013 ◽  
Vol 17 (3) ◽  
pp. 609-626 ◽  
Author(s):  
Ross Guest ◽  
Anthony Makin
Keyword(s):  
Open Economy ◽  
Dynamic Effects ◽  
Fiscal Stimulus

scholarly journals Financial liberalisation and inflationary dynamics in the context of a small open economy

2014 ◽  
Vol 9 (1) ◽  
pp. 89-101
Author(s):  
R Gupta
Keyword(s):  
Open Economy ◽  
Capital Mobility ◽  
Small Open Economy ◽  
Capital Account ◽  
Short Term ◽  
Money Markets ◽  
Reserve Requirements ◽  
Low Degree ◽  
Financial Liberalisation ◽  
High Degree

This paper develops a short-term model of a small open financially repressed economy characterised by unorganised money markets, intermediate goods imports, capital mobility and flexible exchange rates. The analysis shows that financial liberalisation, in the form of increased rate of interest on deposits and tight monetary policy, causes deflation for an economy with a high degree of capital mobility. However, for economies with a low degree of capital mobility, the possibility of stagflation cannot be ruled out. These results suggest that financial liberalisation in the form of lower reserve requirements should be recommended for economies with restricted transactions in the capital account.

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