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Commercial Integration and Fiscal Policy in Interdependent, FinanciallyIntegrated Two-Sector Economies with Real and Nominal Wage Rigidity

机译:具有实际和名义工资刚性的相互依存,财务一体化的两部门经济体的商业整合和财政政策

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摘要

A two-country-two-sector model with a portfolio choice between money and highlysubstitutable domestic and foreign bonds, floating exchange rates and perfect foresight is presented. Account is taken of capital accumulation, government debt and current account dynamics. Numerical methods, including extensive sensitivity analysis, are used to trace the consequences of commercial integration for the effects and spill-over effects of fiscal policy. Another purpose is to establish the relevance of desaggregation for the outcomes of fiscal policy.

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