Demand-Side Shocks and Macroeconomic Policy

• Authors: Maciej K. Dudek

Title variants

PL

Demand-Side Shocks and Macroeconomic Policy

• Languages of publication: EN

Abstracts

EN

The paper focuses on short run macroeconomic dynamics triggered by dem and side shocks. In particular, the paper analyzes, in a general equilibrium framework, the impact of transitory demand side shocks on the behavior of macroeconomic variables and examines the relevance of policy instruments during downturns in economics activity. The paper establishes that transitory shocks can have persistent effects. It shows that stabilization is desirable even if shocks are transitory in nature. In particular, the article reveals that debt financed government spending is a diable stabilization tool and can improve welfare at all horizons even though it inhibits physical capital formation.

Keywords

EN

business cycles; policy; debt; Welfare Costs

• Publisher: Szkoła Główna Handlowa w Warszawie. Kolegium Analiz Ekonomicznych
• Journal: Gospodarka Narodowa. The Polish Journal of Economics
• Year: 2009
• Volume: 233
• Issue: 7-8
• Pages: 17-35

Dates

published

2009-08-31

Contributors

author

Maciej K. Dudek

Identifiers

DOI

10.33119/GN/101223