Dynamic Analysis of Two Policy Lags in a Kaldorian Model
We examine the effects of policy lags on local economic stability using a Kaldorian model. This study analyzes two cases: the case of a monetary policy with a time lag and the case of a policy with both fiscal and monetary lags. Similar to the case of fiscal policy lags examined in a previous study,...
Saved in:
| Main Author: | |
|---|---|
| Format: | Article |
| Language: | English |
| Published: |
Wiley
2015-01-01
|
| Series: | Discrete Dynamics in Nature and Society |
| Online Access: | http://dx.doi.org/10.1155/2015/927138 |
| Tags: |
Add Tag
No Tags, Be the first to tag this record!
|
| Summary: | We examine the effects of policy lags on local economic stability using a Kaldorian model. This study analyzes two cases: the case of a monetary policy with a time lag and the case of a policy with both fiscal and monetary lags. Similar to the case of fiscal policy lags examined in a previous study, monetary policy lags have destabilizing effects on economic stability. However, in the case of the existence of both fiscal and monetary policy lags, there is a possibility that a monetary policy lag can stabilize an economy. |
|---|---|
| ISSN: | 1026-0226 1607-887X |