• Open Daily: 10am - 10pm
    Alley-side Pickup: 10am - 7pm

    3038 Hennepin Ave Minneapolis, MN
    612-822-4611

Open Daily: 10am - 10pm | Alley-side Pickup: 10am - 7pm
3038 Hennepin Ave Minneapolis, MN
612-822-4611
International Finance Discussion Papers

International Finance Discussion Papers

Paperback

Business GeneralEconomics

ISBN10: 1025150996
ISBN13: 9781025150994
Publisher: Hutson Street Press
Published: May 22 2025
Pages: 46
Weight: 0.17
Height: 0.10 Width: 6.14 Depth: 9.21
Language: English

Recent evidence on the effect of government spending shocks on consumption cannot be easily reconciled with existing optimizing business cycle models. We extend the standard New Keynesian model to allow for the presence of rule-of-thumb (non-Ricardian) consumers. We show how the interaction of the latter with sticky prices and deficit financing can account for the existing evidence on the effects of government spending.

15 different editions

Also available

Also in

Economics