All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC
ralph lauren polo

 
Maria Pia Olivero
 
''Fiscal policy and credit spreads: Evidence from a SVAR''
( 2019, Vol. 39 No.2 )
 
 
We study the interaction between fiscal policy, economic activity and credit market conditions using a structural VAR approach similar to that in Blanchard and Perotti (2002). We show that failing to account for the endogenous response of credit spreads to fiscal policy shocks results in the real effects of these shocks being underestimated. We see our results as indicating the presence of a not yet well understood "credit channel of fiscal policy transmission".
 
 
Keywords: fiscal policy, credit spreads
JEL: E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General
E4 - Money and Interest Rates: General
 
Manuscript Received : Jun 21 2018 Manuscript Accepted : May 31 2019

  This abstract has been downloaded 72 times                The Full PDF of this paper has been downloaded 104269 times