日本学術振興会:科学研究費助成事業(科研費)
研究期間 : 2022年04月 -2025年03月
代表者 : 岡野衛士; 江口允崇
This studies clarified as follows: (1) When facing the zero lower bound (ZLB), regardless whether the nominal exchange rate pass-through is perfect or imperfect, money financed-fiscal stimulus (MF) makes both the inflation and the output more stabilized in a small open economy than those in a closed economy, (2) contrary to Gali (2020, Journal of Monetary Economics), under debt Financed Fiscal Stimulus (DF), while an increase in the government expenditure is effective in normal times, that is no longer effective when facing the ZLB, (3) to arising in a negative demand shock which generates a liquidity trap, to stabilize both the inflation and the output, not only an increase in the money growth but also remaining in the money growth even until a negative demand shock disappears is necessary. Those results are released in a working paper in Dynare working paper series and published in IMF Economic Review.