PRACA ORYGINALNA
Demand-Side Shocks and Macroeconomic Policy
 
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Data publikacji: 31-08-2009
 
Gospodarka Narodowa 2009;233(7-8):17–35
SŁOWA KLUCZOWE
STRESZCZENIE ARTYKUŁU
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.
eISSN:2300-5238
ISSN:0867-0005