Stabilizing an unstable economy: Fiscal and monetary policy, stocks, and the term structure of interest rates

C-Tier
Journal: Economic Modeling
Year: 2011
Volume: 28
Issue: 5
Pages: 2129-2136

Score contribution per author:

0.251 = (α=2.01 / 4 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Monetary and fiscal policy measures have been applied in order to avert the financial market collapse and counteract the global recession. In this paper we present an integrated macromodel which in particular focuses on the financial markets. We use a Tobin-like macroeconomic portfolio approach, and the interaction of heterogeneous agents on the financial market to characterize the potential for financial market instability. We show that specific but unorthodox fiscal and monetary policies have to be used to stabilize such unstable macroeconomies.

Technical Details

RePEc Handle
repec:eee:ecmode:v:28:y:2011:i:5:p:2129-2136
Journal Field
General
Author Count
4
Added to Database
2026-01-25