Economic Policy Effectiveness in Hicksian Analysis: An Extension
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Economic Policy Effectiveness in Hicksian Analysis: An Extension
Credit and Capital Markets – Kredit und Kapital, Vol. 13 (1980), Iss. 2 : pp. 252–262
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Tavlas, George S.
Cited By
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A Note on Tax Multiplier
Chang, Wen-ya | Lai, Ching-chongCredit and Capital Markets – Kredit und Kapital, Vol. 23 (1990), Iss. 3 P.351
https://doi.org/10.3790/ccm.23.3.351 [Citations: 0] -
Economic Policy Effectiveness in Hicksian Analysis: A Note
Jaeger, Klaus
Credit and Capital Markets – Kredit und Kapital, Vol. 14 (1981), Iss. 2 P.177
https://doi.org/10.3790/ccm.14.2.177 [Citations: 1] -
The Positively Sloped IS Curve and the Balance of Payments: An Extension of Cebula’s Model
Yannacopoulos, Nicos A.
Credit and Capital Markets – Kredit und Kapital, Vol. 15 (1982), Iss. 2 P.275
https://doi.org/10.3790/ccm.15.2.275 [Citations: 0]
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Abstract
Economic Policy Effectiveness in Hicksian Analysis: An Extension
The speed with which macro policies exert their impact upon economic activity is a key consideration in current policy discussion. As Blinder and Solow argue: “The main issues of [macro] econometric debate for the near future appear to be over timing” [1, 88]. This note has considered the policy implications of two upward-sloping IS curve models which have appeared in the literature. Specifically, it has been shown that the interest elasticity of the demand for money -or the slope of the LM curve - involves differing consequences for the timing aspect of each model and the respective ability of each model to absorb exogenous shocks, Therefore should empirical evidence suggest that in the real world the IS curve slopes upward, it is important to identify the underlying mechanism. Finally, it has also been demonstrated that in a Cebula-type model the role of monetary policy would be limited to adjusting the money supply in a manner which pegs the interest rate at a certain level.