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ERIC Number: EJ1024657
Record Type: Journal
Publication Date: 2013
Pages: 11
Abstractor: As Provided
Reference Count: 17
ISSN: ISSN-0022-0485
Exploring Fiscal Policy at Zero Interest Rates in Intermediate Macroeconomics
Ramamurthy, Srikanth; Sedgley, Norman
Journal of Economic Education, v44 n4 p353-363 2013
Since the financial meltdown of 2007, advanced macroeconomic theory has delved more deeply into the question of the appropriate fiscal policy when the nominal interest rate is close to or at zero percent. Such analysis is typically conducted with the aid of New Keynesian Dynamic Stochastic General Equilibrium models. The policy implications are, in some cases, surprising. Multipliers can change by large magnitudes, and the signs of some tax multipliers are reversed. The authors show how these results can be clearly presented to an intermediate undergraduate audience within the standard IS-MP and AD-AS framework of Jones (2011).
Routledge. Available from: Taylor & Francis, Ltd. 325 Chestnut Street Suite 800, Philadelphia, PA 19106. Tel: 800-354-1420; Fax: 215-625-2940; Web site:
Publication Type: Journal Articles; Reports - Evaluative
Education Level: Higher Education; Postsecondary Education
Audience: N/A
Language: English
Sponsor: N/A
Authoring Institution: N/A