TY  - JOUR
AU  - Turnovsky,Stephen J.
TI  - Alternative Modes of Deficit Financing and Endogenous Monetary and Fiscal Policy 1923-1982
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2123
PY  - 1988
Y2  - 1988
UR  - http://www.nber.org/papers/w2123
L1  - http://www.nber.org/papers/w2123.pdf
N1  - Author contact info:
Stephen Turnovsky
Department of Economics
301 Savery Hall; Mail Stop DK 30
University of Washington
Seattle, WA   98195
Tel: 206-545-8028
E-Mail: sturn@u.washington.edu
AB  - This paper first investigates the effects of alternatives modes of deficit financing on the unemployment rate, inflation rate, and the real interest rate, within the framework of a small complete macroeconomic model. Secondly, it examines the nature of monetary and fiscal reaction functions. The two periods 1923- 1960 and 1961-1982 are considered, with substantial differences in behavior and policy being shown to exist between them The most important conclusion is that long-run monetary neutrality properties shown to exist over the latter period are not intrinsic to the economy, but rather are the result of the stabilization policies being conducted over that period.
ER  -