Long-Run Growth Versus Welfare: The Importance of Transitional Dynamics When Assessing Alternative Fiscal Policies

2009 ◽  
Author(s):  
Manoj Atolia ◽  
Bassam R. Awad ◽  
Milton H. Marquis
Keyword(s):  
Fiscal Policies ◽  
Transitional Dynamics ◽  
Long Run

The Impact of Monetary and Fiscal Policies on the Stock Market in the United States (U.S); Evidence from Linear ARDL Framework

2020 ◽  
Vol 11 (1) ◽  
pp. 132-132
Author(s):  
Aref Emamian
Keyword(s):  
United States ◽  
Stock Market ◽  
The United States ◽  
Real Effective Exchange Rate ◽  
Annual Data ◽  
Fiscal Policies ◽  
Long Run ◽  
The Us ◽  
Short Run ◽  
The Impact

This study examines the impact of monetary and fiscal policies on the stock market in the United States (US), were used. By employing the method of Autoregressive Distributed Lags (ARDL) developed by Pesaran et al. (2001). Annual data from the Federal Reserve, World Bank, and International Monetary Fund, from 1986 to 2017 pertaining to the American economy, the results show that both policies play a significant role in the stock market. We find a significant positive effect of real Gross Domestic Product and the interest rate on the US stock market in the long run and significant negative relationship effect of Consumer Price Index (CPI) and broad money on the US stock market both in the short run and long run. On the other hand, this study only could support the significant positive impact of tax revenue and significant negative impact of real effective exchange rate on the US stock market in the short run while in the long run are insignificant. Keywords: ARDL, monetary policy, fiscal policy, stock market, United States

Stock Market Responses to Monetary and Fiscal Policies

2022 ◽  
pp. 266-282
Author(s):  
Elif Erer ◽  
Deniz Erer
Keyword(s):  
Stock Market ◽  
Fiscal Policies ◽  
Market Returns ◽  
Monetary Policies ◽  
Stock Market Returns ◽  
Long Run ◽  
Stock Market Performance ◽  
Short Run ◽  
Effect Hypothesis ◽  
Positive Effect

This study analyzes the short-run and long-run effects of interaction between fiscal and monetary policies on stock market performance in four emerging Asian economies, which are China, India, Indonesia, and Malaysia, by using ARDL model. The study covers the period of 2003:Q1-2020:Q1. The findings from this study show monetary and fiscal policies play an important role in determining stock market returns. Also, the results theoretically support Richardian neutrality hypothesis for China and Indonesia, Keynesian positive effect hypothesis for India, and classical crowding out effect hypothesis for Malaysia, and interest channel of monetary transmission mechanism only for China.

EVOLUTIONARY ALGORITHMS IN MACROECONOMIC MODELS

2000 ◽  
Vol 4 (3) ◽  
pp. 373-414 ◽  
Author(s):  
Jasmina Arifovic
Keyword(s):  
Evolutionary Algorithms ◽  
Rational Expectations ◽  
Evolutionary Dynamics ◽  
Equilibrium Selection ◽  
Transitional Dynamics ◽  
Rational Expectations Equilibrium ◽  
Macroeconomic Models ◽  
Stability Of Equilibria ◽  
Long Run

This paper provides a survey of the applications of evolutionary algorithms in macroeconomic models. Discussion is organized around the issues related to stability of equilibria, equilibrium selection, transitional dynamics, and the long-run evolutionary dynamics different from rational-expectations equilibrium outcomes. The survey also discusses criteria that can be used to evaluate the performance and usefulness of evolutionary algorithms in the macroeconomic context.

scholarly journals ON THE EFFECTIVENESS OF FISCAL DEVALUATIONS IN A MONETARY UNION

2018 ◽  
Vol 23 (8) ◽  
pp. 3424-3456 ◽  
Author(s):  
Anna Lipińska ◽  
Leopold von Thadden
Keyword(s):  
Monetary Policy ◽  
Monetary Union ◽  
Financial Integration ◽  
Fiscal Policies ◽  
Consumption Tax ◽  
Welfare Costs ◽  
Long Run ◽  
Price Rigidities ◽  
Short Run ◽  
Labor Taxes

This paper examines the effects of fiscal devaluations in a model of a monetary union characterized by national fiscal policies and supranational monetary policy. We show that a revenue-neutral permanent tax shift in one country, which raises its consumption tax to finance a cut to labor taxes, increases welfare of the monetary union in the long run. The distribution of gains among countries depends on their degree of financial integration. We also document that price rigidities result in short-run welfare costs.

U.S. Fiscal Policies and Priorities for Long-Run Sustainability

2004 ◽  
Author(s):  
Martin Mühleisen ◽  
Christopher Towe ◽  
◽  
Keyword(s):  
Fiscal Policies ◽  
Long Run

scholarly journals Do Macroeconomic Variables Predict Deposit Money Banks’ Performance in Nigeria?

2020 ◽  
pp. 14-33
Keyword(s):  
Economic Growth ◽  
Inflation Rate ◽  
Bank Performance ◽  
Fiscal Policies ◽  
Empirical Examination ◽  
Economic Growth Rate ◽  
Macroeconomic Variables ◽  
Long Run ◽  
Short Run ◽  
The Relationship

This study investigated the relationship between macroeconomic variables and the performance of deposit money banks in Nigeria, analyzed with suitable finametric tools. The results of the empirical examination found that all the macroeconomic variables employed (economic growth rate, interest rate, inflation rate, money supply and exchange rate in this study have no significant relationship with bank performance. It was also observed that each and jointly, the macroeconomic variables do not cause bank performance both in the short run and long run. Again, that bank performance responds insignificantly to the shocks of all the macroeconomic variables. Consequently the researchers advocate that deposit money banks in Nigeria with inherent discretionary policy be proactive to the monetary and fiscal policies of regulatory authorities in order to enhance their performance.

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