{"id":3509,"date":"2012-02-20T13:16:02","date_gmt":"2012-02-20T11:16:02","guid":{"rendered":"http:\/\/www.poleconomix.gr\/portal\/?p=3509"},"modified":"2012-02-20T13:16:02","modified_gmt":"2012-02-20T11:16:02","slug":"sovereign-risk-fiscal-policy-and-macroeconomic-stability","status":"publish","type":"post","link":"https:\/\/www.poleconomix.gr\/portal\/sovereign-risk-fiscal-policy-and-macroeconomic-stability\/","title":{"rendered":"Sovereign Risk, Fiscal Policy, and Macroeconomic Stability"},"content":{"rendered":"<p><small>Corsetti, Giancarlo, \u00a0Kuester, Keith,\u00a0 Meier, Andr\u00e9,\u00a0 \u00a0Mueller, Gernot.<\/small><\/p>\n<p>This paper analyzes the impact of strained government finances on macroeconomic stability and the transmission of fiscal policy. Using a variant of the model by Curdia and Woodford (2009), we study a \u201csovereign risk channel\u201d through which sovereign default risk raises funding costs in the private sector. If monetary policy is constrained, the sovereign risk channel exacerbates indeterminacy problems: private-sector beliefs of a weakening economy may become self-fulfilling. In addition, sovereign risk amplifies the effects of negative cyclical shocks. Under those conditions, fiscal retrenchment can help curtail the risk of macroeconomic instability and, in extreme cases, even stimulate economic activity.<\/p>\n<p><strong>\u03a0\u03b7\u03b3\u03ae: <\/strong>IMF<\/p>\n<p><a href=\"http:\/\/www.imf.org\/external\/pubs\/ft\/wp\/2012\/wp1233.pdf\" target=\"_blank\">\u03c0\u03bb\u03ae\u03c1\u03b5\u03c2 \u03ba\u03b5\u03af\u03bc\u03b5\u03bd\u03bf<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Corsetti, Giancarlo, \u00a0Kuester, Keith,\u00a0 Meier, Andr\u00e9,\u00a0 \u00a0Mueller, Gernot. This paper analyzes the impact of strained government finances on macroeconomic stability and the transmission of fiscal policy. Using a variant of the model by Curdia and Woodford (2009), we study a \u201csovereign risk channel\u201d through which sovereign default risk raises funding costs in the private sector. [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19,34],"tags":[28,25],"class_list":["post-3509","post","type-post","status-publish","format-standard","hentry","category-19","category-34","tag-28","tag-25"],"_links":{"self":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/3509","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/comments?post=3509"}],"version-history":[{"count":2,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/3509\/revisions"}],"predecessor-version":[{"id":3511,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/posts\/3509\/revisions\/3511"}],"wp:attachment":[{"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/media?parent=3509"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/categories?post=3509"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.poleconomix.gr\/portal\/wp-json\/wp\/v2\/tags?post=3509"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}