2020-05-18Diskussionspapier
Active, or passive? Revisiting the role of fiscal policy in the Great Inflation
Ettmeier, Stephanie; Kriwoluzky, Alexander
We reexamine whether pre-Volcker U.S. fiscal policy was active or passive. To do so, we estimate a DSGE model with monetary and fiscal policy interactions employing a sequential Monte Carlo algorithm (SMC) for posterior ...